Foreign flows into the Indian market this year at $6.3 billion are one of the best among emerging markets on an absolute basis.
However, relative to India’s market capitalisation (m-cap), these are less than peers Taiwan, South Korea or Indonesia. Year-to-date flows as a percentage of India’s m-cap of $1.97 trillion are only 0.32 per cent. The ratio for Taiwan and Turkey are respectively 0.67 per cent and 0.63 per cent. India’s foreign flows to m-cap ratio improved this year, though, from 0.19 per cent and 0.22 per cent in 2016 and 2015, respectively.
Flows of more than one per