The two major reasons why Indian securities are attractive to international portfolios are: high returns and low correlation with world markets. The long run rate of return on the BSE Sensex has been 18% in real terms.
Apart from Euro issues by Indian companies in the Euromarket, foreign investment companies have been operating in India, building up portfolios of Indian securities. Today, there are 323 foreign institutional investors (FIIs) and 29 foreign brokers operating in India.
Centre for Monitoring Indian Economy, Bombay
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Last updated: August 1995.