India’s stock Market poised for FII Return: Helios Capital Founder

In a recent interview with ET Now, Samir Arora, Founder of Helios Capital, expressed a positive outlook for India’s equity markets. He believes foreign institutional investors (FIIs) could soon start buying again as global investment shifts from the U.S.to emerging markets.

“As I said, normally FIIs buy. This time you can give some reason,” Arora explained.he pointed out that previous FII outflows where linked to specific global events and policy changes. He noted the real selling started around September 2024, when hopes for the U.S. economy rose with Donald Trump’s increased visibility.

However, Arora says that optimism didn’t last. “The march, April decline because of tariffs and the policies which seem to be not consistent or not stable,” caused a downturn in U.S. markets and opened up opportunities elsewhere.

He highlighted the performance difference, stating, “Year to date, the S&P must be up in the range of 13-15%, and the world excluding the U.S. is up some 25% this year.” This shows investors who diversified outside the U.S. haven’t missed out on gains.

“If you do that, then India also has a logical claim to that money,” Arora stated. He believes India’s strong performance and solid fundamentals position it well to benefit from these global shifts. he added that earlier outflows were connected to tariff issues and concerns about India’s economic direction.