Strong FII flows likely in FY11: J P Morgan

The Indian stock markets are likely to witness very strong flow of funds from foreign institutional investors (FIIs) this financial year, a top J P Morgan official said.
    
"We expect FII flows to be very strong this year both in debt and equity. This fiscal could see the highest ever FII flows," JP Morgan (India) Chief Executive Officer Kalpana Morparia told PTI here.
    
Capital market would see a slew of new issuance coming from listed companies, IPOs and Government's disinvestment programme during the year, she said.
    
The Indian industry is likely to raise about $30 billion through public sector divestment, initial public offerings of more than 50 companies that have filed draft offer documents with the capital markets regulator, and follow-on public offers of listed firms this year, she said.
    
"Our expectation is that an additional $12 billion will come from IPOs and another $15 billion by follow-on offering of the existing listed companies this year," Morparia said.

 
"If, India is aspiring to have a growth of 9 per cent, then certainly we will see the investment to GDP ratio being at anything between 35 per cent," she said.
      
Commenting on J P Morgan's plan on India, Morparia said that it would continue to grow in the country.
      
"India is one of our fastest growing segments and we are planning to put more funds into this growth," she said.