Is dollar appreciation a concern for FII flows?
The appreciation of the dollar is going to be short-lived. First, there is a possibility that dollar appreciation and S&P 500 appreciation will go hand in hand. Seven to eight years ago, there was a correlation. Secondly, the focus will now be on fundamentals of emerging markets. So, I am not too worried about that unless we see the dollar going above 52 to a rupee, which I currently don’t. FIIs would not be dissuaded from coming to India at 46 to 49; if anything, it is a better entry. This year, the stock markets offered great returns. What is your take on 2010? Historically, such large years are not followed by another huge year. So, strictly going by that, we should be less enthusiastic. I am simply not extrapolating. I just don’t have the same level of enthusiasm that I had in March. If the earnings keep coming in, the enthusiasm will be back. The market is fairly priced right now and may return in the teens next year, depending on RBI’s actions. Can a large number of issues impact
