"India is in the Christopher Columbus phase," says Kotak. "It's being discovered as a strong and robust economy by global fund managers."
The number of FIIs in India is increasing every month, clearly reflecting that those who missed the bus earlier are willing to take a fresh ride.
The strong market system is also facilitating the inflows. Last year, the market dived by 1,200 points as the rupee went soft against the dollar and there was speculation that intelligence agencies had been roped in and a mega investigation was on.
Order, however, was quickly restored. The exchanges, together with the market regulator, Sebi, decided to clean up the system.
The speculative bubble was nipped in the bud by going after penny stock manipulators. Result: you have a strong economy combined with strong risk management systems in place.