Management

FII inflows and their impact in 2010 Mon Jan 11, 2010 1:49pm IST Credit: Reuters (Rajan Ghotgalkar is Country vanguard - INDIA at Principal International and Managing Director of Principal Pnb asset Management Company (in association with Vijaya Bank). The views expressed in this tug be his own) Economy By Rajan Ghotgalkar The socio-economic class 2008 has been one heck of a ringlet coaster bug which left us with the kind of feeling when we are nearing the peak of the ride and its time for us to clench at the hand bars in anticipation of a ride to base. Everyone missed the huge stock grocery store rally sideline the May 2009 election results and whilst most waited for a correction, the market went on to scale new highs. Not many would disagree that, the market was ahead of its fundamentals but then it had nowhere to go but up when there was a flood of currency chasing limited stock. It was liquidity driving the prices up. Looking back everyone in the business came up with seemingly rational explanations for this phenomenon. Someone erst told me that, experts are people who can offer better explanations for their also-ran here it was the failure to recognise the rally early equal for anyone to capitalise on it.

It is therefore hardly surprising that, we are anxious about the coming year will it need us look good or bad in the eyes of the investors when they look down from peak Sensex 17500! Year 2007 aphorism FIIs bring in about USD 17 Bn. In the year 2008, USD 12 Bn exited and that too in a real upsurge; only to have USD 18 Bn come back in year 2009. The details are interesting - about 50% of the inflows subscribed to QIPs and only about 25% went into the equity lowly market. In fact the DIIs, mostly insurance companies, put more money into the market than the FIIs i.e. after mutual funds sell about Rs.6000 crores. I should confess I am not too worried about the macro economic future. The India produce story is very much intact and kicking. We survived the global financial... If you expect to get a full essay, order it on our website: Orderessay

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