Why FII activities growing rapidlly India?
INDIA’S weightage in the Morgan Stanley Capital International (MSCI) index, a key factor on the basis of which FIIs allot funds for investments, could get a boost in the wake of increased FII investment limit, foreign institutional investors (FIIs) said. However, the Government’s decision to raise FII investment limit in domestic companies in line with foreign direct investment (FDI) may not see an immediate positive impact on the depressed domestic stock markets. Nevertheless, they were confident that this may lead to higher allocation of funds by FIIs for investment in the Indian market. Speaking to Business Line ASK-Raymond James Chief Executive, Mr John Band, said “Hike in FII limit would help in the medium term by attracting more foreign money in the stock markets”. But he said in the short term this decision is not expected to boos t the sentiment in the falling markets. After the terrorist attacks in the US last Tuesday, FIIs have been selling equities on the domestic market.
