“Markets are going up because they are anticipating the future. Interest rates are going to play a very important role. Markets anticipate normalcy will come much faster. We had a big fall in 2018 January. Before the start of the bull market, markets shake you out. Corporate India is highly cleansed unlike 2008 and leverage levels are low. We are in the midst of the birth of what is going to be a good bull market,” billionaire stock investor Rakesh Jhunjhunwala, who is often called “India’s Warren Buffet”, told ET Now, a leading financial news channel in India, a few months ago.
As long as that projection continues to hold true and so long as the money tap remains open in the West, the FPIs will continue to invest in Indian equities.