Foreign mutual funds that invest in Indian shares are trailing onshore rivals by the widest margin in 13 years due to a dive in the rupee, raising the risk of sharp investor withdrawals unless funds embrace unfamiliar and costly currency risk hedging.
Kirk West, managing director Asia, Principal Global Investors, Investment Strategy says that the impact of Bernake’s comments will be good for equities. “Conditions will be good for growth assets, however, we are expecting further weakness in the dollar index,” he says