The Hindu Business Line : Indian equities top draw in fund flows among emerging markets

INDIA still holds the top position in terms of overseas fund inflows among the emerging markets as also Asia, including Japan, with a total net investment of $3,909.90 million from January 1 to April 13.

This is despite a slowdown in April in all the emerging markets. In Asia too, India was in the forefront, ahead of Japan, according to latest available data on global fund flow up to April 6.

The net outflow from emerging markets equities funds slowed down in the week to April 6 as worries about monetary tightening and oil prices eased. Investors showed some solid interest in Japan funds, but pulled out money from the global and international equity funds for the first time in 12 weeks while also retreating from US and European equity funds.

The emerging market equity funds, according to Emerging Portfolio Fund Research , saw outflows of $354.6 million, considerably less than the average $1.1 billion of outflows in the previous two weeks. Though major emerging market equity funds witnessed redemptions, Asia Ex-Japan Equity Funds held up reasonably well as investors pulled out only $11.3 million from these funds with total assets of $42.4 billion.

In contrast, Indian equities attracted a net investment of $168.10 million from April 1 to April 6.

Among the Asian markets, in January, India was in fourth position in terms of funds inflow with $101.30 million in its kitty. Japan at the top then attracted a little over $600 million worth of net investments, followed by Taiwan in the second slot drawing a net inflow of over $450 million and Thailand about $200 million.

Investments into Indian equities jumped in February, and in March, maintained the lead over others in Asia and the emerging markets. At the end of February, net FII investment figure stood at $2,011.80 million and at March-end was at $3,727.60 million.

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