A close look at Foreign Institutional Investors (FIIs) fund flows into and out of Indian equities may provide some clues on where the smart money is placing its bet. FIIs made a net investment of Rs 1,39,408 crore into Indian equities during the fiscal year ended March 31, 2013, according to SEBI. This was reportedly the highest net inflow by FIIs in a single fiscal year since their entry into Indian capital markets in 1992-93. Since the beginning of 2013, FIIs have invested Rs 56,218 crore, last week (April 15-18)the net inflow of FII funds of Rs 638 crore into India last week came after a net outflow of Rs 681 crore in the preceding week (April 7-11).
Masha Gordon of PIMCO (see video) has hinted why PIMCO is underweight on Indian equities. Funds have clearly slowed also due to profit- booking, concerns over high current account deficit and political uncertainty.
