Crude oil is the key to bringing FII money back to Dalal Street: Equirus AMC’s Ashutosh Tiwari

Crude oil could play a decisive role in bringing foreign institutional investor money back to Dalal Street, according to Ashutosh Tiwari of Equirus AMC.

Tiwari’s view comes as valuations and earnings continue to make the market attractive. However, those factors alone may not be enough to produce a sharp rally or a significant re-rating in price-to-earnings multiples.

Foreign inflows remain central

The outlook points to sustained foreign buying as an important condition for a stronger market move. While the market has support from its valuation and earnings profile, a more substantial rally is likely to depend on the return and continuity of foreign inflows.

Why crude oil matters

For Equirus AMC, crude oil is the key factor to watch in assessing whether foreign institutional investor money can return to Indian equities. The source does not provide further detail on the specific oil price level or market trigger involved.

The distinction is important for investors: an attractive market does not automatically result in a sharp upward move. A sustained flow of foreign capital would be required for stronger momentum and a meaningful price-to-earnings re-rating.

Market outlook

The immediate outlook therefore rests on two elements identified by Tiwari: the market’s existing valuation and earnings appeal, and the prospect of sustained foreign inflows. Crude oil remains the highlighted factor in the potential return of FII money to Dalal Street.