Gold funds continued to see strong recovery, drawing $3.9 billion in inflows this week. Over the past three weeks, gold funds have accumulated $12.4 billion, nearly erasing the previous month’s losses.
Experts believe a mix of global and domestic factors have triggered the sharp reversal in the FII sentiment, and one of them is a steep rise in bond yields globally, particularly in the United States and Japan.
Indian equity markets experienced the highest outflows in Asia so far in May, with FIIs withdrawing $2.89-bn funds. This marks the highest monthly FII outflow since January 2024.
JPMorgan Chase & Co. will add Indian government bonds to its benchmark emerging-market index (GBI-EM) starting June 28, 2024
The ongoing trend of growing flows towards India and the prevailing negative sentiment towards China will persist if Indian markets continue to perform well while Chinese markets face challenges, the market expert said
All time high inflows suggest that the third wave has not dampened investors’ enthusiasm for equity mutual funds
There is little evidence to highlight any strong correlation between QE and foreign flows, market showing and economic growth
The Fed has laid the groundwork for tapering this year, but it has also given plenty of advance notice
Despite the outflows, equity markets made new highs in November on the back of strong foreign fund inflows
Through the quarter they garnered net assets worth USD 2.6 billion, higher than the net inflow of USD 2.0 billion they had received in the previous quarter.
The partially convertible rupee rose to as much as 60.83 per dollar, its highest since August 12. It was last trading at 60.84/85 per dollar, compared with its close of 61.08/09 on Friday.
Richard Gibbs, Global Head of Macquarie Securities feels as the end of the year is approaching, the markets will be more focused on the US fiscal cliff.
John Woods, MD & Chief Investment Strategist, Citi Private Bank said the risk appetite is delicately poised at the moment. Although, the markets appear to be slightly complacent at this point in time, there could be meaningful correction in the offing if the fiscal cliff is not resolved soon, he opined.
The rupee has hit a 9-week high on the back of weakness in the dollar and also due to risk returning to all markets. “A Rs 44.20 at best is what people are expecting,” says Latha Venkatesh of CNBC-TV18