Rajesh Kothari, Chief Investment Officer at AlfAccurate Advisors, anticipates a resurgence of foreign institutional investors (FIIs) in the second half of fiscal year 2027. He cited India's favorable combination of structural growth, policy stability, and corporate earnings visibility as key factors driving this outlook. Kothari noted that recent market corrections have made valuations more appealing for investors.
Investment Strategy
Kothari expressed a positive stance on several sectors, including auto ancillaries, capital goods, consumption, and banking. He believes these areas offer attractive risk-reward opportunities for investors. The ongoing developments in artificial intelligence (AI) were also mentioned, with Kothari stating that the AI theme is still in its early stages, suggesting potential for future growth.
Market Context
Kothari's comments come amid a broader context of shifting investor sentiment in India. The country continues to be viewed as a strong market due to its economic fundamentals. Analysts have noted that the combination of reasonable valuations and growth prospects could lead to increased interest from FIIs, particularly in sectors that demonstrate resilience and growth potential. For further insights on market trends, see Moneycontrol's analysis.
Kothari's outlook suggests that sectors such as banking, consumption, and capital goods may see increased investment flows from FIIs, potentially boosting stock prices in these areas. Investors will watch for any indicators of FII activity in the coming months to gauge market direction and sentiment.