An atricle from FE for you update. The power of excess liquidity..
Tuesday September 14, 04:04 AM Source: Indian Express Finance
India hot spot for FII investments By fe Bureau
India is the most popular destination for overseas portfolio investors to park their fund in the Asian region for 2010. It may be a signal of increasing confidence in the Indian growth story, when the rest of the world is struggling to fight the recession. Bloomberg data shows that foreign institutional investors (FIIs) have purchased domestic equities worth $13.7 billion in 2010 till date making it the only Asian markets to have received more than $10 billion of investment this year. It is 56% higher than corresponding period of last year.
This year, FII investment into India is over 57% higher than that of South Korean, which remains at the second slot in terms of overseas investment followed by Indonesia, Taiwan, Thailand, Philippines and Vietnam among others. Interestingly, higher amount of FII investment has flowed into India despite the fact that domestic equities are commanding a relatively higher PE against its regional peers. While Nifty (^NSEI : 5760 0) of NSE is trading at a PE of 19.36, it is 13.66 for South Korea, 4.16 for Indonesia, 14.98 for Taiwan and 14.61 for Philippines. As regards, future FII inflows into India will depends on the second quarter numbers, which would give a cue into the future earnings trajectory of India Inc.
Tuesday, September 14, 2010
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