Are The FIIs Just Fair-weather Friends? As the markets move into heated territory, many from the pinstriped fraternity are ringing the alarm bells.

Business Today, April, 2006 by Anand Adhikari

Two years ago, the $190-billion (Rs 8,55,000- crore; the number is funds under management) CalPERS, also known as California Public Employees Retirement Scheme, the world's largest pension fund, trooped into India along with dozen other pension funds. At the time, CalPERS' entry-the company was a late entrant into India-seemed timely. Most Indian stocks were undervalued, the Sensex was trading at around 5,000, and with a price-earnings multiple of 15. In the two years since, CalPERS hasn't emerged a big investor in the Indian market. Still, its word does carry a lot of weight in the international investing community.

That should explain why the downgrade assigned by the company to India in its outlook for emerging markets in 2006 is worrying. It could indicate increasing...

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