FII inflows cross $19 bn
According to Bloomberg data, FII inflows into India in 2012 is the second highest in 14 years. Foreign inflows were the highest in CY10, with FII having net bought $29.32 billion. Last year, meanwhile, India saw an outflow of $512 million by foreign institutions.
Data also shows that Indian market attracted the highest amount of foreign flows when compared with its Asian peers so far. South Korea stood second with inflows worth $11.81 billion since January, followed by Japan ($2.72 billion), the Philippines ($2.17 billion) and Taiwan ($1.33 billion).
Market experts were of the view that Indian market looks attractive as expectations of more reforms by the government and cut in interest rates by the RBI has led to improvement in sentiment.
According to a Morgan Stanley report, action from global central banks has reduced India’s tail risks from macro stability tribulations, including a high external deficit. “Global liquidity is at a level that suggests very strong returns from Indian equities. However, domestic liquidity needs to improve further. Sentiment remains hesitant and cautious. The government is also showing resolve to push policy reform, although a lot is still to be done,” stated a team of Morgan Stanley analysts led by Ridham Desai in
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