{"id":1040961,"date":"2013-06-04T17:48:30","date_gmt":"2013-06-04T12:18:30","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=1040961"},"modified":"2013-06-04T17:48:30","modified_gmt":"2013-06-04T12:18:30","slug":"rotation-into-debt-continues","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/06\/04\/rotation-into-debt-continues\/","title":{"rendered":"Rotation into debt continues"},"content":{"rendered":"

Indian institutional flows into debt has been relentless this year. DIIs have pulled \u20b9 12,511 crore from equities and pumped \u20b9 2,31,965 crores into debt during Jan-May 2013. It appears that as though the entire market has made a one-way bet that rates are going to fall this year… or have they gone so risk-averse that they have decided to ditch equities completely?<\/p>\n

\"DII<\/p>\n

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FIIs however continued to hoover up equities. Pumping in \u20b9 83,206 crores during the same period. Their interest in Indian debt was only a fraction of the domestic appetite.<\/p>\n

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\"FII<\/p>\n

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This is interesting because of the questions it raises. Do FIIs think Indian debt is too expensive compared to equities? Are they taking a contrarian stance to domestic institutionals? Is there something wrong with the way our policies are setup that incentivizes foreign investment in equities over debt?<\/p>\n

Whatever it maybe, equity investors better pray that FII tide doesn’t turn too quickly.<\/p>\n

Previously:\u00a0The Great Rotation into Debt<\/a><\/p>\n

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