Skip to main content

FIIs coming back

The global financial crisis in the past one year had compelled foreign investors to pull out huge sums of money from the emerging markets causing the indices in these regions including India to plunge. But it appears that the appetite of these foreign investors for emerging markets seems to be on the rise again and India in this regard seems to be pulling ahead. As reported in a leading business daily, while India has pulled in US$ 1.8 bn of foreign money, other emerging markets such as Indonesia, Philippines, Taiwan and South Korea have bagged US$ 18 m, US$ 531 m, US$ 632 m and US$ 7 respectively. The perception is that global liquidity is improving and that there are not likely to be any major reversals in these flows immediately unless the risk perception about emerging market equities heightens again. Also, those foreign investors who have been sitting on huge piles of cash are now taking the opportunity to invest in emerging markets including India where valuations are very attractive currently.

Comments

Popular posts from this blog

Learning from #FriendsReunion - Plan Your Bottle Episode

Learning from #FriendsReunion - Plan Your Bottle Episode While watching Friends: The Reunion a while back ( Yes, i am super late, been a very busy week) something  struck with me which the show’s creators said about "budgeting" a term called Bottle Episode.    On Friends - Its one of the most successful television sitcoms of all time. From 1994 to 2004, the show never left the list of top 10 most-watched  television programs.  It was also one of the most expensive television series of all time. By the last two seasons, each of the six main actors earned more than $1 million per episode. From the resources perspective, the show has more than justified that expense since then. As per some estimate Friends earns around $1 billion a year from syndication, merchandising, streaming, and other deals. During the reunion show, creator Marta Kaufman talked about how they planned “bottle episodes” each season to manage the show’s budget....

What if SP comes to power?

I was just wondering, if the Samajwadi Party (SP) supported government comes to power at the Centre this time around, many companies in India might have to write off another kind of loss from their books - loss on account of unused computers. After all, the party’s supremo Mr. Mulayam Singh Yadav believes that - "The use of computers in offices is creating unemployment problems. Our party feels that if work can be done by a person using hands there is no need to deploy machines." Incidentally, the party is also against stock markets, use of English language, agricultural machines, and high corporate salaries!

The worse may not yet be over for the already battered US housing market

The worse may not yet be over for the already battered US housing market, where the seeds of the current financial crisis were sown. While house prices since then have crashed, the question that is now on everyone’s mind is - whether they have fallen enough? And the answer may well be ‘no’. The logical conclusion being the bigger the bubble, the bigger will have to be the crash. Not only that, while prices have melted, they are not cheap as comparable to wages and even more so in a scenario where job uncertainty looms large. Furthermore, as reported in the Wall Street Journal, the prices currently are at a level last seen in 2003 when they were perceived to be inflated even then. Therefore, to find pre-bubble prices one would have to go back to about 2000 when values overall were about a third lower than they are today. Interestingly, the paper has compared the current bubble with the 1989 property bubble and has observed that the home prices currently are more expensive in relation to...