Portfolio Flows into India: Do Domestic Fundamentals Matter?

By Poonam Gupta, James P. F. Gordon. Social Science Research Network, 2003

128 citations recorded by the source corpus.

This paper analyzes the factors affecting portfolio equity flows into India using monthly data. Flows to India are small compared to other emerging markets, but seem to be relatively less volatile. They also seem to be quite resilient. The paper shows that portfolio flows are determined by both external and domestic factors. Among external factors, LIBOR and emerging market stock returns are important, while the primary domestic determinants are the lagged stock return and changes in credit ratings. In quantitative terms, both external and domestic factors are found to be about equally important.

Subfields: Finance

View Paper: https://www.semanticscholar.org/paper/cd96a67cb627c17ef0582d83a81dbe4b372abb75

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1. R. Garg
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Citations in the corpus

• Foreign Portfolio Investment Flows to India: Determinants and Analysis (2014, methodology): “However if the influence is negative, it would be a case of foreign investors buying (selling) when domestic stock returns are low (high), with the expectation that returns will rise (fall) in future (Gordon and Gupta 2003).”