Talking to ET Now, Aurora explained that headline FPI numbers often mask what is really happening in the market. “From the Fed’s January-end to the end, the combined FPI flow is almost zero. But last do and in the last month, Bhavana hit two things-negatively surprised at the tariff and weak-and-vulnerable corporate results,” he said.
He argued that a large part of the sale is not traditional FPI money out, but private equity investors booked profits from successful IPOs. “These investors do not sell because they prefer China or Korea. They are selling because they have kept stocks for five to seven years, made money, and now it’s time to exit. It is classified as FDI or FPI, which distorted the picture,” Aerora noted.
He added that the traditional FPI remains creative on India. “They are the same ultimate investors – sometimes they invest in private markets, sometimes by those people. The number of their exit looks negative. But it is not a negative outlook on India.”
Looking at the global trends, Aurora published that when the S&P 500 increased this year, the world has increased by 25% in terms of the Dollar Lord excluding the US. “The US is turning into non-US markets, and it claims to be India,” he said.
On the domestic front, Aurora expects that portfolio allocation develops. Investors can bow down to consumer-facing stocks, with the possibility that the government will focus more on consumption by cutting GST and slowing down capex costs. “If the consumer has more money, the area will benefit. But sales of soap and shampoo will increase not as easy. The basket has changed,” he explained.
He also pointed out that in the budget 2024, Lakh reduced tax of 1 lakh crore, which reduced the monthly TD, giving extra liquidity to the homes. “They were wasted a lot in F&O and gaming platforms like Dream 11. With curbs on such a way, part of this disposable income will get into the actual economy – maybe the extra day to order,” he said.
In short, when foreign flow is shaking on the surface, Aurora believes that India’s big story is intact. “Plus-minus a few weeks or months, this will also come out,” he said.
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