After 10 weeks of outflows, emerging markets finally saw inflows around USD 300 million inflows last week, but it‘s India which is witnessing an increased allocation, said Rishav Dev, Equity Strategist at Quant Capital.
Rishav Dev, Equity Strategist at Quant Capital - Institutional Equities, sees some outflow from debt funds due to rupee depreciation.
Rishav Dev, Equity Strategist, Quant Capital - Institutional Equities expects Japan and the US equity markets to continue enjoying bulk inflows.
According to Rishav Dev, October typically is a weak month for emerging market flows but November and December will be very good months and will bring back inflows to India.
Rishav Dev of Quant is not too worried about the decline in fund flows in September. He says maybe the magnitude of flows has slowed, but it is inflows nonetheless. Moreover, he adds, global factors are in India's favour.
Amongst the emerging markets, the Brazilian market has set in motion with significant inflows in the past 2-3 weeks. On the other hand, China witnessed the biggest outflow this week, says Rishav Dev, Equity Strategist at Quant Capital Institutional Equities.
There have been outflows seen from Russian funds to China and India. Even European equity funds are seeing outflows for the last 7-8 weeks.
Outflows from emerging market funds have gone up from USD 2 billion to USD 3.7 billion in the past two weeks.
Bond markets have continued to attract inflows in the past six to seven weeks, a big deviation from heavy outflows seen last year, Rishav Dev, Quant Capital Institutional Equities said.
EPFR data shows India has seen outflows of around USD 192 million last week, which is a little different from the Sebi data. According to Rishav Dev of Quant Capital, this difference is because EPFR does not cover hedge fund data and prop desk data.
Rishav Dev of Quant Capital says as per EPFR data, on a four week basis India has already seen outflows of close to USD 344 million. He feels developed markets, in particular Europe, would continue to see more inflows when compared to emerging markets.