 "Foreign Portfolio Investors")
India has traditionally been one of the favourite destinations for foreign portfolio investors (FPIs). In the past 12 months, Indian equity market received nearly $18 billion worth of FPI inflows, highest among the emerging markets.
FPI’s love for India shows in the premium valuation on Dalal Street. At 25.2 times trailing earnings BSE Sensex is the most expensive benchmark index in the emerging markets. It is nearly 50 per cent expensive, compared to benchmark equity indices in Indonesia, Brazil, China, and Mexico and over three times expensive compared to its Russian peer.
Strong capital inflows, however, contrast with a steady
