Why are FIIs buying so heavily in the last few days? Is it true that funds are buying ahead of the US elections?

You are absolutely correct. On Tuesday, the FIIs poured in Rs.3500 crore of money into Indian equities. In the last 7 trading sessions, these FIIs have put in close to Rs.11,000 crore into Indian equities. One story building up is on the US elections front.

You can just hear it from the experts. There is an interesting asset allocation story that is building up around India. UBS and State Street Global Advisors are buying Indian stocks as a hedge against the US elections. But why are they exactly buying Indian stocks.

The view of the fund managers at both these funds is that the $2.2 trillion Indian stock market would be largely immune to the outcome of the US presidential elections as well as adverse developments in the Sino US trade. They expect India to be a lot more insular.

Till date in October alone, global investors pumped in $2.5 billion into Indian equities and a lot of money has come as a hedge against the US election. These global investors are also impressed by the fact that the High frequency indicators have been showing recovery in the Indian economy.