India flow tide has turned decisively - Citi Research

Reuters Market Eye - India flow tide has turned decisively, said Citi Research, a unit of Citigroup Global Markets Inc. "It's high, rising and could well have a long way to go," it said. Citi Research said retail inflows in mutual funds of $6 billion in six months sustainable; cites weak performance of other assets and very low equity ownership. Year-to-date foreign debt inflows are ahead of equity flows for the first time, says Citi Research. Foreign portfolio investors have invested $15 billion in Indian stocks and $23 bln in debt so far in 2014, according to Reuters data. Citi Research says foreign investors are turning aggressive on India, betting more on cyclicals and less on defensives. Domestic investors raising exposure to staples, industrials and energy, it says, while Maintaining Sensex target of 31,000 and Nifty target of 9,240 for December 2015. (Reporting by Abhishek Vishnoi)