According to Yogesh Kalwani, Head of Investments at InCred Wealth, foreign portfolio investor (FPI) outflows could partially reverse even as concerns surrounding the AI rally persist.
Any meaningful correction in the AI rally could act as a catalyst for higher foreign investor inflows into India over the coming year. However, the impact could be more back-ended, given the current market environment, he said in an interview with Moneycontrol.
He believes the removal of the long-term capital gains (LTCG) tax, if announced in the upcoming Budget, would be a positive development for the markets. However, its actual implementation would be closely watched.
Kalwani remains constructive on India's economic growth prospects over the next 12 months and expects the corporate earnings recovery to continue from the second half of FY27 through FY28. However, he cautioned that the recovery could be uneven and stock-specific.
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