Global investment banking firm Merrill Lynch expects portfolio investors will continue to pour money in India and China over the next one year as the two Asian nations are growing at a much faster pace compared to most other countries in the world.
Robust economic growth story has made foreign institutional investors (FIIs) to look at India and China as their favourite investment destinations. India has seen a flow of over $17 billion in the equity market since January.
In future, synergies of the two giants will reward the investors in the two economies which are beginning to combine their expertise for fresh growth potentials, it said.
"Combination of India and China will be powerful moderating influence on global prices of goods and services, stimulating new consumption around the world and demand for Chinese and Indian products," Merrill Lynch's Investment Strategy report said.
"Growth in Asia is likely to be led by India and China because the two economies are getting associated which is driving rapid growth," the study observed.
Indian software developers are also providing the software and design for many of the things being manufactured in China.