FIIs to Invest $520 mn in Bourses Soon

The liquidity-driven rally of the Indian stock markets shows no signs of a halt in the near future with funds to the tune of $520 million soon expected to hit the markets, according to brokers.

Fund houses from Korea are expected to pump in $500 million and hedge funds in the US and Europe also have plans to put in funds to the tune of $20 million. "Many fund houses in Korea have collected India-specific funds worth $500 million that may come in at any time," a broker told PTI.

Though the brokers declined to name the funds, they said, US-based Tapestry Asset Management, Swiss-based GL Asset Management and Korea-based Mirae Asset Investment Management are some of the names buzzing in the market.

Funds prefer India over its cheaply valued peers despite worries of stretched valuations because of the wholesome development it has shown. "Give me a sector that is not performing well in India. Why would funds then invest in other sector-dependent markets," Indian operations director, Aranca, Madhusudan Rajagopalan said.