Why is FII flow more than expected in the Indian market ?
Foreign funds are coming to India because they think there are immense growth opportunities in India. They find India to be a more stable economy than most of the emerging economies. They feel more comfortable to invest in India than in China. The return over investments in China may be more spectacular than India, but the volatility issue is still much greater in China than in India. In India, volatility may not be of much concern because the market is trading at a record high, both, at the BSE Sensex and NSE Nifty. Do you think the subprime issue will still have an impact on the Indian market? Nobody knows the truth. Government agencies have come out with a figure of $400 billion subprime exposure in the global market. Certain banks are changing their various exposures. I think that the Indian market is insulated to a certain extent from the subprime factor. The reason for the insulation is that Indian companies are able to stay away from the subprime because they see the other end o
