Among the top sectors, financial services attracted the highest inflow, with FIIs purchasing Rs 4,728 crore worth of stocks, following an even stronger buying of Rs 22,910 crore in the latter half of April.
With pressure on Chinese equities, foreign investors are shifting investments towards India, analysts said. They have put in $1.11 billion in Indian equities in August, so far
Global equity funds faced outflows in the week to June 29, as recession fears crept higher, with major central banks looking keen to raise interest rates further to tame soaring inflation.
The outflows contributed to a 4.5% drop in outside money overseen at Allianz SE’s asset management business in the first quarter, the Munich-based insurer said in a statement Thursday.
Gross inflows in equity funds have gathered pace, but redemption has more than doubled since July 2020
Record outflows when markets are touching new highs is not only a sign of profit booking by investors but also fund managers who have read the market wrong.
Mutual funds had to revise their expense ratios as per the new slabs, starting April 2019
Over the last 3 years (from December 2013 to November 2016) gold ETFs have witnessed outflows in almost every month, and cumulatively an outflow of around Rs 5,300 crore
Nomura expects domestic investors to take a backseat as well, at least until more clarity emerges from a continuity perspective.
Geoffrey Dennis of UBS believes the Fed is likely to hike only by September and then later on in December.
Domestic economy is improving, which will start trickling in the corporate earnings in the the next few quarters, and that the overall market is on a good trajectory, says Vikas Khemani, President & CEO of Edelweiss Securities.
In comparison, foreign portfolio investors (FPIs) were net sellers of equities worth Rs 9,963 crore during the same period. However, FPIs were net buyers of equities to the tune of Rs 17,806 crore last year. Before that, they had invested Rs 1 lakh crore in each of the preceding three years.
Emerging markets as an asset class have witnessed immense headwinds and if outflows from these markets worsen, India will not be able to stay immune, says Akash Prakash of Amansa Capital.
Kotak Mahindra head Uday Kotak believes the focus for the next few days will be on global flows. He adds that while India is fundamentally looking better, the pressure on outflows needs to be dealt with.
According to Sebi data, mutual funds have net bought Rs 3167 crore of stocks this month, largely neutralizing the Rs 3670 crore worth of selling by foreign institutional investors.
At the country level for equities, China reported the largest outflows within EM, USD 0.64 billion last week
Although India remains one of the best games amongst emerging markets, incremental outflows can be seen flowing into north Asia, specifically China and Korea in near-term, says Manishi Raychaudhuri of BNP Paribas.
Although India has begun to see some attraction from foreign money, mutual fund redemptions still continue and there are no inflows into India-dedicated funds says Cameron Brandt of EPFR.
Outflows from emerging market funds have gone up from USD 2 billion to USD 3.7 billion in the past two weeks.
According to Sharma, outflows on account of royalty and fee for technical services accounted for 16-33 percent of the FDI inflows between FY10 and FY13.
What we will see as a secular trend in the debt community will be an expansion of markets and types of investors as mark key Indian names, which are now well-known internationally to investors, tap those markets, get this window of opportunity, says Amit Bordia of Deutsche Bank.
According to funds tracking company EPFR Global, USD 12.18 billion has flown out of emerging markets equities funds during the third quarter of 2013. It noted that emerging markets equity funds posted back-to-back quarterly outflows for the first time since the second half of 2011.
The US Federal Reserve's decision not to cut back its monthly bond-buying programme, may have unwittingly set the stage for a deeper correction, sometime in the next couple of months.
The bulls may be taking a breather, but foreign investors have not let up on investing in the Indian stock markets. Despite slow forward movement on crucial policies, a slowing economy, and a weak rupee, FIIs have spent the last 19 months building up their positions in the country's financial market.
On average, Emerging Market-dedicated active funds are 3 percent overweight India due to being underweight China and Taiwan.