Dollars swamp BRIC, India flooded with $1 Billion per week
By siliconindia   |   Monday, 08 June 2009, 21:40 IST   |    1 Comments
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Dollars swamp BRIC, India flooded with $1 Billion per week
Bangalore: The BRIC nations, Brazil, Russia, India and China are flooded with billions of dollars in their economies as stimuli to come out of the recession. In India, Foreign Institutional Investors (FIIs) poured $1.3 billion into Indian equities. They poured another $1.87 billion in the first half of May, before the election result. For May as a whole, the inflow was $4.14 billion, a billion a week, The Economic Times reports. This stimuli operation has happened globally, as since April, $20 billion has been poured into all emerging markets. The Sensex in India is up by 50 percent in 2009, Russia is up by 63 percent, China 57 percent, Brazil 60 percent, and Argentina 45 percent. So, the dollar flood is not India-specific: it is part of a global rush into all emerging markets. The dollar flood in India is not stated as a reason of Congress coming back into power, but if it is maintained for a period, it will be against the finance minister's budgetary endeavors. The global markets were said to be paralyzed till March because of fear, bringing down some of the biggest corporate of the world, AIG, General Motors, and some others. And as a result, FIIs had pulled $12 billion out of India in 2008, and the big Indian corporates could not get global funding, hitting their profits and projects hard.

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