More legroom for FII investments

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The Indian market has seen robust foreign portfolio flows in the past three years. It has also attracted more than its fair share of global flows, at the cost of regional emerging market peers. This has raised concern on whether the Indian market is getting overcrowded by foreign flows. Credit Suisse has a counterview. It believes India is not a 'crowded trade'. The global bank says net foreign buying on a rolling 12-month basis, as percentage of market cap, is at 0.9 per cent, compared to its historical average of 1.2 per cent and below Japan's 1.8 per cent and Taiwan's 1.3 per cent. Credit Suisee's two biggest overweight markets are South Korea and India.