FII inflows seen slowing down, feels India Inc
With dollar regaining strength against major currencies and the US interest rates hardening, the crucial FII investment in Indian stock market will slow down in the initial months of the current calendar year, feel India's top CEOs and CMDs.
As much as seventy-eight per cent of the country's leading 200 CEOs and CMDs polled by the 'Assocham Business Barometer (ABB)' are not sure whether the foreign institutional investors will remain positive on India and continue to pour money in 2005 as they did last year.
The portfolio investment had touched $8.8 billion in 2004, not only giving a major boost to the Sensex but also triggering a debate whether there should be any cap on the FII inflow.
The CEOs surveyed by ABB are not willing to bet on the FIIs in the wake of high volatility in the market place.
A clear view from the survey was that the inflow to the emerging markets as a whole would slow down with investors again looking to the US since the dollar has started improving and the Federal Reserve keeping the interest stance quite strong.
Agreeing with the findings of the survey, Assocham president MK Sanghi said ABB would regularly track various aspects of the Indian and global economy based on the views of the industry leaders.
ABB covered the opinion of industry leaders across different sectors such as manufacturing, banking, finance and telecom.