FII flows storm back into India, puzzlingly

Foreign institutional investor capital has been flooding back into India, with the country topping 11 major Asian markets by net inflows with $11.4 billion to date this year, according to Bloomberg data. The rebound in sentiment is in line with several other Asian markets including South Korea, which had also previously suffered FII outflow on the back of a deteriorating global economic picture. What is striking in India’s case is that the return of FII interest flies in the fac…