Taiwan and South Korea could also invite investor interest, said David Hunter
SEBI takes a bold step on disclosures for foreign funds, marking a significant shift in its regulatory approach
Overseas investors net bought 1.24 trillion rupees ($14.5 billion) of Indian bonds under the so-called fully accessible route in 2024, clearing house data showed.
Fears of a second Trump presidency also sparked concerns that his administration might impose new tariffs on exports from the region, similar to measures taken during his previous term
Investments into index-eligible Fully Accessible Route bonds have risen by 812.18 billion rupees ($9.8 billion) since the announcement in September, data from the Clearing Corp. of India show. Inclusion starts in phases from June.
Inclusion in this global benchmark is a major win for India, as it attracts a significant pool of global capital for bond allocations, leading to increased foreign exchange inflows.
Nilesh Shah of Kotak AMC identifies the key driving forces behind today's markets: fundamentals, flows, and sentiments. With limited investment options in certain markets, foreign investors are directing their funds towards India, bolstered by the "China Plus One" sentiment.
Nilesh Shah believes India's growth shines amidst global economic challenges. He credits government-private sector collaboration for India's visible growth and advises investors to stay invested for the country's long-term growth while being prepared for short-term uncertainties
Harsha Upadhyaya, the Chief Investment Officer at Kotak Mutual Fund told CNBC-TV18 in a conversation, that he is sees a trend of valuation gap between largecaps and broader market stocks narrowing.
The difference between benchmark US and Indian securities narrowed to 3.53 percent on May 8 from 3.96 percent on April 6.
Foreign investors have bought government bonds worth 152.50 billion rupees ($1.85 billion) on a net basis since November.
MSCI will announce the results of its semi-annual index review on November 11 and adjustments will take place on November 30.
The measures from the central bank come amid heightened volatility in the foreign exchange market, with the Indian rupee’s exchange rate against the dollar hitting fresh all-time lows nearly every other day.
On September 18, the US central bank cut interest rates by 25 basis points citing implications of global developments for the economic outlook as well as muted inflation pressures.
The comments, from Securities and Exchange Board of India (SEBI) Whole-Time Member G. Mahalingam, delivered during a speech at a financial event, mark the strongest public comments this year from an Indian regulator about the effects of strong inflows in pushing up the currency.
This more bullish view emerges from the poll despite widespread concern since the last Reuters poll over the damage a disruptive and radical government move to replace the bulk of currency in circulation may have done to the economy.
The Indian economy may have improved considerably owing to a good monsoon, but Karwa says the earnings may only improve in the second half of current fiscal and will hold strong till the end of FY18.
With overseas investors pumping in over USD 3 billion in the Indian capital markets this month, total foreign inflows have touched USD 13 billion since the beginning of the year.
FIIs provisionally bought Rs 25.6 billion worth of Indian shares on Tuesday, exchange data shows, and a total of Rs 50.5 billion worth over the previous four sessions.
Among the steps being considered are raising dollars via state-run banks or companies or easing overseas borrowing rules.
Pramod Gubbi, VP-Sales, Ambit Capital said since the liquidity inflows are likely to remain steady going forward for India, the market see some gains on back of that. However, market could see some consolidation in the near-term, he added.
Rukhshad Shroff, Investment Manager in India Country Specialist at JPMorgan Asset Management believes an Asian fund of a global emerging market fund have been the main contributors to the liquidity.
Philip Poole, Global Head-Emerging Markets, HSBC believes the global economy is improving in 2013 as signs of growth in the United States and China are much more evident than in 2012.
Vivek Rajpal, Rates Strategist, Nomura India believes the rupee will not move below 50 per dollar in the near term. But, there are fair chances that it wil appreciate to 52 or slightly lower levels.
Vibhav Kapoor of IL&FS believes strong foreign fund flow can take the Nifty to 5500-5600 levels.