FPIs Turn Positive on India: Banks, Largecaps in Focus, Says Nuvama's Shiv Diwan

• Foreign investors show renewed interest in Indian markets after months of selling, with sentiment improving.
• Nuvama's Shiv Diwan notes strong investor participation and building confidence as earnings recover in select sectors.
• FPIs begin buying again after seven months of negative flows, with India-focused funds seeing $67 million inflow last week.
• India's valuation premium over other emerging markets has narrowed, making equities more attractive despite lingering concerns.
• Banks remain top choice for FPIs due to size, liquidity, and improved outlook; autos and chemicals also attract interest.