>FLOW MATTERS (KOTAK SECURITIES)

Flow versus flow: We analyze demand for and supply of Indian paper, both private and public, over the next few months to understand the implications for the Indian market. The market appears fully valued and lacks catalysts, which makes the amount of paper supply and demand for the same important in determining its future course. We concede that this may be an academic exercise and things seldom work to form given the myriad associate complexities.

Inflows: Depends on several variables
Outflows: Large amount of fund raising planned

■ Market shows a strong correlation with net secondary market flows; no surprises there.
■ Future institutional inflows or demand for paper very hard to judge
■ Supply of paper, private and public, very large on paper
■ Market is fairly valued in the absence of triggers in either direction

To read the full report: INDIA STRATEGY