Analysts expect FII flows to Indian equities to pick up in H2

However, analysts do caution against intermittent phases of withdrawals by FIIs given macro-economic developments across major world economies

The worst may soon be over for foreign flows into domestic equities, observe analysts. They expect foreign investors to return to emerging markets, including India, as global central banks — especially the US Federal Reserve (Fed) — become less aggressive in hiking rates to rein in runaway inflation.

“Fed Chair Jerome Powell wants to slow down at some point after a 75-basis point (bp) hike on Wednesday. The Federal Open Market Committee may be thinking of a 50-bp (hike) in September, followed by 25 bps in the remaining two meetings,” wrote Philip Marey, senior US strategist at Rabobank International, in