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Monday, Jan 17, 2005

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FII investment trends

This is with reference to the article "FII fest in India's stock market", (Business Line, January 11). The report missed a key issue in FII investment trends: the composition and profile of FIIs.

In the last two years, a large number of new FIIS have registered. As the number and profile of FIIs expands, we can expect less volatility.

Not all FIIs can be expected to react in the same way at a given point in time. Their reactions may be determined by their country of origin, investment objectives and other parameters. Some focussed attention on the above issues would be useful.

V. Vijaykumar

Pune

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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