Mumbai, Oct. 8 -- A sustained improvement in corporate earnings, stability in the rupee and favourable global developments could encourage foreign portfolio investors (FPIs) to return to Indian equities, said Nirav Karkera, Head of Research and Fund Manager, Wealth by Groww.

"A couple of these external trigger events coinciding with sustained improvement in earnings domestically and some sort of stabilization in the INR could cumulatively build a stronger case for FPI's returning," Karkera said.

Karkera said foreign investors assess their returns in US dollar terms, making the rupee's 6-7 per cent depreciation this year a concern.

He said the combination of weaker performance of Indian equities and currency depreciation had reduced the...