The worst of FII selling may be over, according to Prashant Khemka, Founder of WhiteOak Capital. In January, FII had significant sell-offs totaling Rs 78,027 crore, but in March, outflows decreased to Rs 3,973 crore.

Khemka stated that last year saw excellent FII inflows, but starting in January of this year, there was a significant movement of funds into the U.S. However, this trend has now slowed and stabilized. Depending on market conditions, it may continue to increase, as markets are not necessarily tied to the economy in the short term. He also noted that India may gain a competitive advantage over other countries due to its lower tariff rates with the U.S.

He also stated that India will have a competitive advantage over other countries because of its lower tariff rates with the US. 

Khemka explained, "India will benefit compared to other countries like China, Vietnam, Thailand, Cambodia, and others since their tariffs are higher. This market shift will favor India since its tariffs are around 26%, whereas China has 34%, Vietnam has 46%, the EU has 20%, and Pakistan has 29%.”.

FII Flows (₹ Crore)

Khemka also discussed their investment approach, which is to find a balance between quality and valuation, avoiding extreme positions that could result in prolonged underperformance. They classify themselves as "A to AA rated" in terms of quality rather than "AAA" in order to minimize risk. He stated, "This strategy helps reduce the risk of extended underperformance that some high-quality portfolios have experienced in recent years. By not being overly focused on quality, we aim to achieve consistent returns in various market conditions."