Emerging markets could see more fund flows in 2013, as the returns have always been satisfactory. However, which emerging market garners more will depend on the stability of the Governments, growth prospects, Central bank actions and Government`s reform measures.
Considering 2014 elections round the corner and the need to show better performance on all fronts, Government`s actions will be market friendly. The budgets will be growth oriented. RBI is also likely to reduce interest rates during 2013, as the rates cycle is changing. All this will increase confidence levels and inflows both by way of FII and FDI can be expected to be better in 2013.
Everything which comes in from outside viz. FII funds , should also go out , it is not always one way traffic, so we should always have to keep a watch on international scenario , These FII will not take much time to flee if any other emerging market like Korea,Brazil, Thailand, malayasia or China looks more greener than ours. As already a record inflow has been there, more chances are of its going out..
yES .I AGREE WITH THIS STATEMENT BECAUSE THE PRESENT GOVERNMENT IS TRYING TO ENFORCE ALL TYPES OF REFORMS AND INVESTOR FRIENDLY.It is the influence of the present finance minister who is very keen in implementation of all reforms.let us wait and watch his populist budget in the coming month.The stock market and sensex will reach its pinnacle of glory at that time.
Yes, as it is India and the other emerging markets have seen record inflows in 2012 and with most the emerging economies set to out perform their would be more inflows in 2013 specially since global liquidity situation is good.