FIIs Cautious on India: Market Expert Reveals Where Hope Lies Amidst AI Hype

• Foreign Institutional Investors (FIIs) maintain a net short position in the Indian stock market, indicating a preference for selling and short-selling.
• Mihir Vora, CIO at Trust Mutual Fund, attributes FII caution to India lagging behind other Asian markets in AI investment, and a weakening rupee.
• India's stable 6-7% economic growth could attract FIIs once the global AI hype subsides, as there's currently no major attractive trigger.
• Vora is underweight on large-cap IT due to single-digit growth, preferring a stock-selective approach for mid-cap and small-cap IT firms.
• He favors non-ferrous metals like copper, aluminum, and zinc due to demand from AI, EVs, and renewables, playing the theme through exchange and gold financing companies.

Why It Matters: FIIs remain cautious on India, but stable economic growth and a post-AI world could shift sentiment.