India Equities Need Stronger Catalysts for Sustained Turnaround, FPIs Caution

• Despite a Nifty rebound, FPIs warn that stronger triggers are needed for a decisive shift in India's investment narrative.
• Concerns persist over US-India trade deal delays, geopolitical unpredictability, and currency volatility impacting foreign investor sentiment.
• Earnings momentum is slowing compared to global peers, with domestic growth identified as the key driver for Indian markets.
• Recent market corrections have eased valuation pressures, but FPIs believe valuations are not yet compelling enough to drive aggressive buying.
• Potential catalysts for a sustained rebound include surprise Budget announcements or a truly favorable US-India trade deal.

Why It Matters: Indian equities require significant policy changes and trade deal clarity for a sustained positive shift.