SMC Global: FII Inflows Return to India Hinges on Several Factors

SMC Global's Subhash Aggarwal believes India's financial future is about to change.

The Reserve Bank of India is keeping interest rates steady while providing liquidity.

He suggests that if the U.S. reduces interest rates and the rupee stabilizes, foreign investors might return.

Also, a trade deal with the U.S., improved earnings, and stable liquidity are key drivers for market recovery.

Despite potential global uncertainties, domestic growth from GST reforms and consumption may drive the market.

The core economy shows resilience, though earnings could be dispersed.

Rural demand is expected to grow.

Banks, auto, real estate and consumption sectors are expected to improve in the coming months.