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The amount of money betting on the Indian stock markets has gone up in recent times, with regional funds too showing strong allocations to the India story.
“India saw inflows ($274 mn) from ETFs during the period, with India-dedicated ETF participation superseding that of its EM-focused peers. Outflows from India-focused active funds also eased in March in contrast to the trend seen earlier,” according to a Kotak Securities (Institutional) Foreign fund-flow tracker report authored by Saifullah Rais.
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Total flows to India are $116 million. There were ETF inflows of $274 million and non-ETF outflows of $158 million, according to data from the report.
“Allocations by Asia ex-Japan funds favor India and Taiwan over Brazil and Korea...EM-focused ETFs turn positive in the latter half of March; India-focused ETFs see strong inflows as well,” said the report dated April 11, based on data from global fund-flow tracket EPFR.
The report added that money to India funds amongst Global Emerging Market(GEM) funds was up 9.9% in February 2014. Funds investing in Asian countries excluding Japan had increased 0.4% to 11.8%, noted the report.
GEM and Asia ex-Japan have favored India and Taiwan over China and Korea in recent times, added the report.
