There was some interesting news on fund
flows. Asia ex-Japan funds increased their India weightings by 2.1% to 13.5%
over twelve months to end-October and Global Emerging Markets funds increased
their weightings by 2.6% to 11.6% over the same period. There have been substantial redemptions
in funds benchmarked against the MSCI Emerging Markets Index, including $1bn in
the last month alone. This would tend to confirm that the smart money has been
positioning in India for the apparently inevitable start of a long period of
monetary easing. The return prospects for Indian equities in 2015 seem assured.