Holi, FII inflows in March to cross $1B?
Indian markets are closed today on account of Holi.
The Securities and Exchange Board of India (SEBI) provides daily data on FII inflows & outflows, for both equity as well as debt markets. Here’s a look at net FII investments in Indian equity markets, so far in March 2006:
Just the past 10 trading sessions have seen net purchases approaching US $1 billion! To put things in perspective, net FII investments in all of 2005 were US $10 billion. Amazing.
Bloomberg has an article highlighting this trend across several emerging markets (found via Roger’s blog); note this:
“Start by looking at a recent Bloomberg screen of the 15 top performers over the last three years among more than 8,000 U.S.-based mutual funds. As of the end of last week, all 15 were stock funds invested in single countries and regions of the developing world — Turkey, Brazil, India, Russia, Indonesia, plus a smattering of Eastern Europe and Latin American funds.”
Is this a recipe for disaster? Or are we in the middle of a once-in-a-lifetime bull run?
PS: More emerging market stats for ‘06.
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