After foreign institutional investor (FII) outflows worth nearly Rs 2 lakh crore year-to-date, equities are showing early signs of recovery, according to Elara Capital. The brokerage attributes this turnaround to India’s resilient macroeconomic backdrop within emerging markets (EMs), alongside moderating valuations and stabilising earnings revisions. “With valuation premiums cooling and earnings outlook steadying, conditions now favour a gradual FII reallocation and sustained domestic leadership,” Elara said in its recent note. The firm highlighted four key reasons supporting the potential FII reversal, as cited by Economic Times. Despite its growing weight in EM indices, India remains under-represented in global investor allocations. India’s share in EM benchmarks has climbed to aro

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