There is lots of low cost money floating around globally –searching for good investment opportunities. US, EU, Japan, Australia, S Korea, and many more countries including India have reduced their interest rates or maintained low interest rates since Jan 2013. This low cost capital is an opportunity for companies to borrow at a low rate and invest in creating productive assets (read capacity expansion) –which will in turn create economic growth. It is happening to a small extent – but most of this excess cash is ending up in speculation and in high risk assets like stock markets. A part of this cheap money is coming into Indian stock markets through the FII route and this is the reason for the highs that we saw yesterday.