Will Budget bring back FIIs? Morgan Stanley's Ridham Desai expects 3 reforms to revive foreign flows

After $21 billion of sustained selling by foreign institutional investors since early 2025, market strategists are pinning hopes on the Union Budget to revive foreign inflows. Morgan Stanleys India equity strategist Ridham Desai outlines three key capital market reforms that could help reverse the FII outflow trend and restore investor confidence in Indian equities.