HSBC Says India Could Attract $25 Billion in FII Inflows

HSBC believes India could draw up to $25 billion in foreign institutional investor (FII) inflows if underweight global emerging-market funds return to neutral allocations. The brokerage cited improving corporate earnings, resilient domestic demand and lower relative volatility as factors supporting renewed investor interest.

The firm favours financials, automobiles, retail, hospitals and select industrial stocks as attractive sectors for foreign capital. Stronger economic fundamentals and valuations are seen as catalysts for reversing the underweight positioning among international funds.