The sell-off by foreign portfolio investors (FPIs) may continue but foreign ownership declining to a multi-year low will act as a buffer, says Kunal Vora, head of India equity research, BNP Paribas. In an interview with Samie Modak, Vora says moderation in growth and rising input cost pressure can lead to earnings downgrades.
What are the key reasons for the FPI sell-off?
The rising inflation in key commodities and elevated bond yields globally remain the key challenges for foreign investors, leading to capital outflows across emerging markets (EMs). Foreign investors are looking for safe havens in the rising interest rate