FIIs buy $3.15 billion in 10 days!

If you thought that $5 billion in a year was good for Indian markets, consider this- FIIs have bought stuff worth $3.15 billion in just 10 days! No wonder the markets are sky rocketing due to this surge in liquidity. As long as the global conditions remain stable, expect some more dollar inflows. And just in case Fed goes for another rate cut, floodgates might open. So do not underestimate the strength of these strong moves.

Also remember that currently less than 5% of household savings are invested into equities. I am wondering as to what might happen if that percentage increases to say 10% over the next couple of years. Although a lot of domestic money is finding its way into the equity markets through Unit Linked Insurance Plans offered by the likes of ICICI and LIC. (Although thats a bad and inefficient way to invest in the markets)

Its an irony that foreigners are more bullish on India than the Indians themselves!