Weak Rupee, AI Risks to Drive FII Comeback in India by 2026: Tibrewal

• Pankaj Tibrewal predicts a strong return of Foreign Institutional Investor (FII) flows to Indian equities in 2026.
• Key drivers for increased FII flows include a weaker rupee (projected around 90), improved growth visibility, and growing global concerns about AI disruptions.
• A weaker rupee is expected to enhance India's export competitiveness and make Indian assets more attractive to foreign investors.
• Rising global AI risks may prompt capital redirection towards stable, growing markets like India due to its strong fundamentals.
• Current low interest and pessimism among foreign investors are considered a contrarian signal, historically preceding strong inflows.

Why It Matters: Foreign investment in India is poised for a strong comeback by 2026.