Pulse of the Street: markets log modest weekly gains, but Iran tensions keep sentiment fragile

FPI drag

However, Chawla notes that even if the West Asia war subsides, a breakout rally is unlikely in the near term, as a sustained revival in foreign portfolio investor (FPI) inflows remains elusive. “For FPI flows to meaningfully reverse, India needs to have a stable currency and a visible valuation gap versus peers,” Chawla said.