MUMBAI, May 25 -- India's benchmark equity index may struggle to attract foreign institutional investor (FII) money as the Nifty 50 remains heavily skewed toward banking and information technology (IT) stocks, sectors facing slowing growth and structural disruption from artificial intelligence (AI), according to Manish Sonthalia, chief investment officer at Emkay Investment Managers.

The IT services business model is getting disrupted through AI, Sonthalia said in an interview with Mint, adding that banking system growth is likely to remain around 10-12%.

At current Nifty 50 valuations of 22-23x earnings, that may not be attractive enough for FIIs, he said, arguing that domestic institutional investors (DIIs) may have to continue suppor...