# Indian stocks face a valuation correction

By @Akshat_World on X · https://f.xyz/t/fa813689-3c83-4965-8d8c-9780e5f283af

> Foreign money can earn more safely elsewhere, so Indian stocks correct until their returns improve.

**Result:** If held over the last 3 months (Oct 28, 2026 – Oct 29, 2026): +1.2%. Over the same days: S&P 500 +0.7%.

## What it holds

- **India falls** (100%, +1.2% over 3 months): against NIFTY (Nifty 50) +1.2%

## The plan behind it

Akshat Shrivastava wrote on 29 Sep that foreign investors can earn about 12% tax-free in dollars from Gulf deposits plus selling puts. Unless Indian stocks offer at least 15% in rupees, foreign money stays away, so India is likely to see a valuation correction. This holds a short on the Nifty 50.

> Some banks in Middle East are offering 6% in USD terms on FDs.
> 
> 1) You deposit 100 units money at 6%.
> 2) Write 1 year puts, get another 6-7%.
> 3) All tax free. In USD/AED terms.
> 
> Any rich person/FIIs will be playing this game.
> 
> Risk? well, you get assigned your puts on high quality tech firms. That too at least 10-15% cheaper.
> 
> Unless Indian equities can offer at least 15% in INR terms, there is no reason for FIIs to invest.
> 
> This is just math. Whenever the return potential for Indian equities expand, FII money will return.
> 
> Till then, we are likely to undergo valuation correction.
> — @Akshat_World on X: https://x.com/Akshat_World/status/2104807622935511379

Picked by fxyz from @Akshat_World’s post.

**What would prove it wrong:** Foreign investors start buying Indian stocks again.

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