'Those calling India expensive will keep missing,' says CIO as FIIs pump up Sensex, Nifty

As the markets begin to rebound following months of foreign investor-led decline, Vikash Khemani, founder and CIO of investment firm Carnelian Asset Advisors, on Tuesday doubled down on his bullish view of Indian markets, urging long-term investors to remain committed despite short-term volatility. 

“Lot of naysayers got undue attention recently, Just see what 4 days of FII flows have done. Imagine what will 4 years of positive flow will do to Indian markets! Study Japanese Economic Miracle to get glimpse, which took Nikkei to 60 PE. Those who call India expensive will keep missing or will be invested without peace!” Khemani wrote on X.

His comments came on the heels of a sharp market rally, fuelled by strong foreign institutional investor (FII) inflows and upbeat global cues. On Monday, the BSE Sensex jumped 1,078.87 points or 1.40 per cent to close at 77,984.38, while the NSE Nifty surged 307.95 points or 1.32 per cent to 23,658.35—both hitting six-week highs. During intra-day trade, Sensex briefly crossed the 78,000 mark.

FII activity has been a key driver. On Friday alone, foreign investors bought equities worth Rs 7,470.36 crore. In the last six sessions, Sensex has rallied over 4,100 points (5 per cent) while Nifty climbed 1,260 points (5.5 per cent).

“Best way to make money in India is remain invested for next 10 years,” Khemani added. “I have conviction, India will be one of the best markets in USD over next 10 years. This doesn’t mean intermittent corrections won’t happen, this doesn’t mean there won’t be accident or bubbles. Normal market cycle will continue to play out.”

A mix of global optimism, short covering ahead of the F&O expiry, and strong momentum in banking and oil & gas stocks lifted broader sentiment. Analysts like Mehta Equities’ Prashanth Tapse credited “renewed optimism by foreign investors” and firm cues from US and European markets for driving the rally.

“Renewed optimism by foreign investors coupled with strong US and European market cues further bolstered the sentiment,” said Prashanth Tapse.