India Capital Inflows After RBI Move

Citi has issued a bullish call on India equity inflows following a Reserve Bank of India policy action, suggesting the bank expects meaningful foreign capital to rotate into Indian equities in the near term. India has been a consensus overweight in emerging market allocations, but inflow momentum had softened; a fresh RBI catalyst — likely a rate cut or liquidity easing — reignites the carry and growth attractiveness of Indian assets. This is reinforced by the broader context of easing oil prices, which structurally benefit India as a major crude importer and reduce current account pressure. The cleanest expression is through India-focused ETFs and large-cap Indian ADRs, with financials and consumer discretionary as the highest-beta sectors to domestic rate cuts.