FIIs on the Fence: 'Continuity, Discipline' Key for India's Budget & Growth

• Ross Maxwell of VT Markets emphasizes 'continuity and discipline' for India's upcoming Budget, focusing on capital expenditure, infrastructure, and manufacturing support.
• Fiscal consolidation and maintaining investor confidence through long-term growth drivers are crucial for India.
• The US Federal Reserve is expected to maintain its pause on interest rates until at least June, with no immediate need for cuts despite political pressure.
• To attract FIIs, India needs policy consistency, macro stability, strong corporate earnings visibility, predictable taxation, and continued reform momentum.
• Geopolitical risks, while creating short-term volatility, are unlikely to significantly disrupt financial markets unless they impact energy, trade, or financial stability.

Why It Matters: India's Budget needs continuity and fiscal discipline to attract FIIs, while the Fed maintains a cautious rate pause.