‘FIIs likely to return to India’

NAGPUR: Sanjay Dongre, senior fund manager of UTI AMC, said foreign institutional investors (FIIs) who had withdrawn from the Indian markets last year are expected to return as the US Fed has stopped hiking rates. “Even the latest outlook by the agency appeared dovish,” he said.
“There are chances that it may eventually weaken the US-dollar against other currencies. In such a scenario, the financial institutions may look for non-dollar assets like the equities in Indian markets,” he said.
Dongre was in the city to hold a meeting with the mutual fund distributors as a part of UTI MF’s equity yatra, a campaign covering 51 cities.Nagpur is the third destination in the series. “The campaign is being held to reach out to smaller cities,” he said.
Commenting about the slump in Chinese economy, he said it would impact the rates of commodities, ultimately benefiting India.
On the general elections, he said, it may have a short-term impact on the markets. “However, in the long-term markets would remain insulated. It’s not for the first time that elections are being held in the country,” said Dongre.