ET Alpha Wealth Summit | FIIs haven't abandoned India, they've just reshuffled: Samir Arora

At the ET Alpha Wealth Summit, investor Samir Arora argued that FIIs have not abandoned India but rotated from large-cap blue chips (HDFC Bank, Reliance, Infosys, TCS, Kotak, Bajaj Finance, HUL) — whose share of FII portfolios has halved from ~40% to ~20% over four years — into broader midcap and higher-growth names. While headline net FII outflows stand at ~$50 billion, an estimated $150–200 billion was drawn from these legacy large-caps even as ~$100 billion flowed into other Indian stocks, and the count of companies with at least 1% FII ownership has expanded from ~900 to ~1,300. Arora framed the underperformance as valuation-driven rotation rather than a structural exit, likening it to the current Nvidia-Coca-Cola multiple anomaly in global markets.