India's Growth Story Intact Despite FII Volatility, Rupee Weakness: Kedaara Capital

• Manish Kejriwal of Kedaara Capital states India's long-term investment case remains strong, unaffected by FII caution and rupee depreciation.
• Currency depreciation (3-5% annually) is a structural assumption in long-term investment models; higher depreciation this year demands greater valuation discipline.
• India's economy is insulated by strong domestic demand, with most investments in financial services and consumer businesses not exposed to global trade disruptions or tariffs.
• Capital pivoting from China is reallocating to multiple markets (Japan, Australia, India), not solely India, and this shift may be temporary.
• India continues to deliver strong rupee-denominated returns and distributions to paid-in capital (DPI), attracting global investors despite currency fluctuations.

Why It Matters: India's fundamental growth story remains robust, driven by domestic demand and strong returns, despite FII volatility and rupee depreciation.