India just broke its single year record for foreign investment and it’s only the end of September.The mark, set today, is $17.89 billion, according to the Business Standard. That beats 2009’s total of $17.86 billion. The specific class of investment is foreign institutional investment, which includes equity funds.
The pace appears to be picking up too, with $300 million invested in the country for the week ending September 22.
The question then is whether or not the Indian economy, and its Sensex exchange, is in a bubble.
Currently, the P/E ratio of the Sensex is 19.1, which doesn’t seem ridiculous. The U.S. S&P 500 is trading just above that right now.