By Admin 
FII Selling Trend: Foreign institutional investors seem to be continuously distancing themselves from the Indian stock market. This period of selling has been going on for the last several days. Despite the market touching new heights, the confidence of foreign investors does not seem to have fully returned yet.
Recently, Sensex and Nifty had reached new all-time high of 14 months. However, even after this, FIIs continued selling. Different opinions are emerging regarding his return in the market. While some people consider valuation important, global brokerage Goldman Sachs believes that foreign investors will return only when companies see strong improvement in earnings. Let us know, what does the brokerage have to say?
Goldman Sachs’s view on FII’s return
Timothy Mo, Asia Pacific Equity Strategist of Goldman Sachs, says that after weak performance, the return of FIIs to India is possible in the year 2026. He believes that this comeback will not be due to high valuation, but due to improvement in the earnings of the companies.
Talking to ET Now, he said that in the year 2025, India was among the weakest performing markets in Asia and emerging markets. This situation has been seen for the first time in almost three decades. When India’s performance has been so weak.
Goldman Sachs opinion
Goldman Sachs believes that the decision of foreign investors to invest in India will depend on the improvement in the earnings of companies. According to the brokerage, the earnings of MSCI India Index may increase by about 15 percent in the year 2026.
According to Timothy Moe, this could make India among the countries performing better than average in emerging markets. He also told that at present the Indian market is trading at about 22 times forward earnings. Although it is expensive, considering the long-term prospects, it can be considered fair to a great extent.
Mo says that in the coming time, the returns from the market will mostly depend on the increase in the earnings of the companies, and not on the valuation going up further. He also indicated that India’s recovery may take some time. Because investors first want to see clear signs of earnings growth.
Also read: Gold Price Today: Gold prices continue to rise! Silver jumped by Rs 21,000, know the latest price in your city