See more market upside on FII inflow hope: Credit Suisse

Sakthi Siva, Credit Suisse says after 4 consecutive months of net foreign selling in Emerging Asia (ex-China & Malaysia) of USD 23 billion, foreign buying has started in October. Of the USD 3 billion of net foreign buying in October, half has been in Taiwan followed by India, she adds.

With the MSCI Asia Ex-Japan P/B rising from a low of 1.28x in August to 1.43x currently, she believes first phase of rally from distressed valuations is largely over and second phase is likely to be driven by signs of return on equity (RoE) bottoming/EPS downgrades slowing.

The fact that net foreign buying so far is just USD 3 billion after selling of USD 23 billion also suggests more upside, she feels.