INSUBCONTINENT EXCLUSIVE:
Mumbai: Foreign institutional investors (FIIs) pumped a net of $3.2 billion into Indian equities in November, their best show so far this
financial year.
However, market watchers warn that the so-called hot money flow is part of incremental allocation to emerging
third-largest economy tumbled to its lowest level in more than six years.
For the year-to-date period, FIIs have invested a net of $13.5
vice-chairman at US-based Invesco.
He said reaccelerating global growth, albeit up to a modest level, an expected partial resolution of
trade issues and easy financial conditions on a global basis are key reasons for the hot money to flow into riskier assets.
In the
third-week of November, EPFR-tracked emerging markets equity funds continued to benefit from the easing bias of major central banks and
emerging markets funds posted their fourth consecutive inflows, with major regional groups taking in fresh money as retail redemptions
financial conditions remain tight
The previous low was recorded at 4.3 per cent in the January-March period of 2012-13
The gross domestic product (GDP) had expanded at 7 per cent in the corresponding quarter of 2018-19.
The low rate of expansion was primarily
due to weak manufacturing growth, falling consumer demand, slow private investment and a drop in exports due to the global slowdown.
While
good amount of selling by FIIs
Year till date, India is up almost 11-12 per cent versus the US markets -- be it Dow or S-P500 or Nasdaq -- which are up anywhere between 20
In last two months, because of the steps taken by the government, there has been some revival in equities, making these flows to reverse