INDIA FIRST TO MARKET

Research evidence excerpt

INDIA FIRST TO MARKET

Asia Pacific Equity Research

India First to Market 24 July 2026

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India: All That Glitters Is Gold (Toshi Jain)

Despite surging prices in recent years, gold demand in India has remained remarkably stable...

….suggesting a shrinking price elasticity of demand

India Equity Strategy (Rajiv Batra/Rushit Mehta)

Flows & Positioning in Jun’26 Q - FIIs trim Financials; DMFs add Discretionary/Healthcare; US

$115bn potential foreign inflows

Foreign investors aggressively reversed course in the second half of June, injecting around $3.3bn over the last 27 trading

sessions driven by tactical rotation to non-AI cohort, falling oil prices in 2Q, policy measures to stabilize INR and robust

earnings expectations (ex-energy sector). Consumer services, including e-commerce and hotels, attracted the highest foreign

buying during the first half of July, followed by Metals and Mining and Healthcare ( Figure 80 FPIflows-FinancialsandAutosfacethebruntofforeignselingthisyear). We believe the selling pressure

will continue to ease as foreign ownership has come down to 15.8%, which is a 15-year low ( Figure 2 DIownershipcontinuestoincrease,whileFIownershipcontinuestofal). At the same time, FIIs

appear to be maintaining a preference for mid- and small-cap segments to capitalize on higher-growth sectors and longer

runway for expansion. If foreign LO investor groups were to neutralize their underweight in Indian equities, this could translate

into potential net inflows of around $115bn. During the Jun’26 quarter, FIIs trimmed their OW in Financials and UW in

Industrials ( Figure 5 FIsectorpositioninginBSE50). Top large-cap names bought by FIIs were Adani Ports, Coal India, JSW Infra, Hindalco and Asian Paints