Arjuna Mahendran, MD & Head, Investment Strategy Asia, HSBC has expressed his views on the money moving in India through FIIs investments and shown tat the same inflow can be used as a tool for investment in any of the growing economy. His views are as appended below:
I think the fund flows that we track suggest that in January you had positive flows into emerging markets on a substantial basis for the first time since October last year and that was significant. Now we will have to watch that and see whether it will sustain over the next three to four weeks. If it is, which I suspect it could be, then I think emerging markets in general and India in particular could see further upside. Having said that, valuations also have to be watched on the way up so I don't think it's going to be a very substantial upside from here; 10-15% would be my guess.