Foreign investors doubt Indian growth will continue
Bollywood star Shah Rukh Khan poses with the bronze statue of a bull outside the Bombay Stock Exchange (BSE) building after attending a listing ceremony of the Eros International in Mumbai on October 6, 2010. Global movie distributor Eros International, which was listed on the alternative investment market of the London stock exchange, rose 22 percent over its issue price of 175 rupees (3.95 USD), in its debut trading at the Bombay stock exchange.
India's finance minister tried his best to convince foreign institutional investors that the path ahead is smooth for India's economic growth story. But the big guns aren't buying it. As a matter of fact, they're still selling — fast.
So far this year, FIIs have pulled out almost $750 million of the $3.2 billion in foreign money invested in the Indian markets, most of which is in debt instruments, according to the Indian Express.
The paper said fund managers who interacted with the finance minister Tuesday said the government had standard replies to concerns on inflation, deficits, growth and governance — meaning they didn't see any creative or dramatic solutions to those nagging problems.
“Inflation is the most worrying part for the FIIs. Major talking point among FIIs right now is slowing growth in the country, the only factor which was working in attracting FIIs to India,” the paper quoted Jagannadham Thunuguntla, Strategist & Head of Research at SMC Global Securities, as saying.
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