India’s forex reserves hit record high at $365.82 billion

India’s total foreign exchange reserves at $365,822.5 million got a boost from the increase of $9 billion in foreign currency reserves which touched $340,359.9 million this week, according to the figures released by the Reserve Bank of India on Friday.

Last week the reserves had increased by nearly $3 billion to touch $365.75 billion.

One of the major contributors to this is the huge spurt in global liquidity with foreign institutional investors pouring money into emerging markets.

Samco Securities points out that for the 26th consecutive day foreign institutional investors have been positive in their investments in the Indian market at a total of Rs 37,600 crore year till date whereas the domestic institutional investors have net invested Rs 7,900 crore year till date.

Umesh Mehta, head institutional research, Samco Securities, quoting the world renowned Mark Faber (publisher of the widely read Gloom, Boom & Doom Report investment newsletter) said the Federal Reserve and the European Union have been printing money which is flowing across the world, particularly to the emerging markets (EMs).

India is the most attractive destination among emerging markets.

“It offers 15 per cent growth (6 per cent inflation and 8 per cent real time GDP growth rate.) This superior growth among the emerging economies has attracted a lot of foreign fund inflows,” he said.