New Delhi, May 26 -- Foreign portfolio investor (FPI) flows into India are likely to remain muted in the near term as the country's relative attractiveness compared to other emerging markets (EMs) weakens, according to a report by Kotak Institutional Equities.

The report flagged concerns over slowing capital inflows, rising current account pressures and weaker earnings outlook, saying India's external capital dependence has become increasingly visible over the past two years.

"We expect FPI flows to stay muted, given India's low attractiveness versus other EM markets," the report said.

According to the brokerage, India is facing a combination of "weaker relative FY2027E earnings growth in terms of quality and quantity," along with "neg...