How A Pause On Rate Hikes By The US Fed Will Attract FPI Flows In India?

CA Aditya Sesh, Founder and Managing Director of Basiz Fund Service Private Limited said "There will be no major impact of Fed rate hike on Indian equities. To an extent, it may affect large cap investment by FPIs. However, Indian economy is on a good wicket -it is less risky today than before and it has its own USP so managers can look at Indian equities independently. Coming to bonds, Indian issuers may have to pay a tad more to procure them.However, this will be neutralized by an impending review of India's rating by rating agencies. Finally, the domestic savings of India is at least 5X of the FDI and maybe 3X of the FPI without taking into account its gold savings. Indian trade is also slowly dedollarising. Holistically speaking, this FED rate hike shall not have a major impact on Indian equities."