FII flows into Indian equities may not pick up in near term: Motilal Oswal's Raamdeo Agrawal

Adding to the pain is the resurgence in Covid-19 cases in China, elevated inflation, oil prices, war uncertainties, and supply issue.

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Last time, you made a point that FIIs will feel painful to reenter into the Indian markets. Today's Motilal Oswal note says FII ownership has shrunk to a multi-quarter low in the markets. The Nifty 500 and Nifty 50 have been trimmed by almost 60% and 72% respectively quarter-on-quarter in terms of FII ownership. When do you think FIIs will return? Now, the dollar is also expensive.

When will the FIIs come back is the million-dollar question. Before they come back, now the exits will be with more intensity. I have no clue.

It looks like directionally, they might keep selling because the other emerging markets are much cheaper. Indian markets are not correcting deeply. So, they are very high.

My understanding is that FIIs may remain subdued or selling at margins. But, whenever they come back, retail participation will increase in India. They have sold it without emotions and will also sell without emotion. It will be fun to see how they buy next.