For FIIs, India becoming less and less attractive: Sunil Tirumalai

The recovery from lockdowns has been reasonably good without any big government stimulus, says Tirumalai

After a world-beating rally, domestic markets are losing their allure to emerging market (EM) peers. SUNIL TIRUMALAI, executive director-India equity strategist, UBS Securities, explains why foreign portfolio investors have turned cautious on India. In conversation with Samie Modak, Tirumalai says this year’s rally is primarily driven by domestic money and those flows could dry up. Edited excerpts:

How has India managed to outperform most global peers this year?

One, Covid-19 impacted the unorganised or the informal economy but the listed space has largely benefited. Two, in 2020-21, despite the economy shrinking 7.5 per cent, the earnings growth for Nifty companies was probably the