I have a related query to both @nithin and @nik:
As we can see that FII are pouring money into India due to liquidity, I also observed that foreign retailers too are pumping money in India. When I speak to my college friends, who are now NRI and well-settled in the US, I hear from them raising their stake in Indian equities and still going strong. So both FII and foreign retailers are inclined towards Indian equities.
On the other hand, I could sense that Indian investors have a growing interest in investing in US equities. The rising AUM of Motilal S&P 500 and other International Investment Funds, Nasdaq 100 trade volume, Rising popularity of apps and services like Vested to enable an Indian investor to buy an entire US stock or even a fractional value of it. One of the reasons, Indian investors invest in US securities is to take advantage of Rupee depreciation against the dollar. I don’t know about where DII is investing after selling off heavily, as I haven’t followed that space. But demand is there for sure from Indian retailers to invest in US securities. On this forum too, there is a lot of anticipation on why is Zerodha taking so long to offer US investing.
So my question to both of you is - Where is this ‘grass is greener on the other side’ leading us to?