Strong FII flows likely in FY10: J P Morgan

Strong FII flows likely in FY10: J P Morgan

Mumbai: 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.

Capital market would see a slew of new issuance coming from listed companies, IPO’s and Government’s disinvestment program during the year, she said.

The Indian industry is likely to raise about $30-billion through public sector divestment, initial public offerings (IPO’s) of more than 50 companies that have filed draft offer documents with the capital markets regulator, and follow-on public offers (FPO’s) 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%, then certainly we will see the investment to GDP ratio being at anything between 35%," she said.

Commenting on J P Morgan’s plan on India, Morparia said that it would continue to grow in the country.