FIIs Cautious on India: Earnings Must Catch Valuations, Says Kotak Life CIO
Business
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Moneycontrol•23-01-2026, 07:00
FIIs Cautious on India: Earnings Must Catch Valuations, Says Kotak Life CIO
- •Radhavi Deshpande, CIO at Kotak Mahindra Life Insurance, states FIIs are valuation-sensitive and will remain cautious on Indian equities in the short term.
- •Meaningful FII participation requires domestic earnings growth to catch up with elevated market valuations.
- •The Union Budget is unlikely to see a major jump in capital expenditure, with growth expected to track nominal GDP.
- •Job creation will remain a key priority, focusing on infrastructure, manufacturing, and welfare schemes.
- •Despite strong domestic fundamentals, caution is advised due to global headwinds, uneven earnings recovery, and high valuations in some market segments.
Why It Matters: FIIs will return to India only when earnings justify current valuations; Budget capex growth will be modest.
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