Portfolio Flows Into India: Do Domestic Fundamentals Matter?

Poonam Gupta and James Gordon

No 2003/020, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; FII flow; market capitalization; exchange rate; FII inflow; FII investment; Capital flows; portfolio flows; India; stock market return; equity flow; equity investment; flows to India; lagged return; Emerging and frontier financial markets; Stock markets; Stocks; Portfolio investment; Interbank rates; Global; Asia and Pacific (search for similar items in EconPapers)
Pages: 37
Date: 2003-01-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=16255 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2003/020

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().