Expert view, Aug. 29 -- As foreign portfolio investors (FPIs) have turned net buyers of Indian equities since July this year, Vikas Gupta, CEO and Strategist at OmniScience Capital, believes non-AI diversification could drive more FPI inflows to India. In an interview with Mint, Gupta said a spike in inflation will prompt the US Federal Reserve to hike rates, but the most likely course for the US Fed is to hold rates steady, given the balance between job growth and inflation. Edited excerpts:

Based on the consistent July and August inflows, it looks like the beginning of a sentiment turnaround for FPIs. Most likely, this could be an initial exploration of allocating to the non-AI assets to balance or hedge their portfolios.

In the emerg...