Mumbai, April 16 -- Muted earnings, premium valuations, currency weakness, relatively attractive emerging market (EM) peers, and India's limited participation in the global AI value chain have reduced the country's appeal for foreign portfolio investors (FPIs), says Arbind Maheswari, head of India equities at BofA Securities, in an interview with Mint. While global investors remain cautious, domestic flows will continue to support the country's market activity, he says. Edited excerpts of the interview:

If we take a step back, in the post-covid recovery phase, India seemed like the only large emerging market that had a story to tell. And that continued on for nearly three-four years. There was strong visibility on earnings backed by dome...