At $8.8b, India saw highest year-to-date FPI inflows

Our Bureau Chennai | Updated on October 27, 2021

FIIs and DIIs are overweight on financials, staples

Among emerging markets, India has the highest year-to-date foreign portfolio investor inflow of $8.8 billion, closely followed by Brazil ($8.1 billion), according to BofA Securities. Most EMs continued to see outflows in Sept 2021, notably South Korea (-$25.5 billion YTD) and Taiwan (-$16.7 billion), the brokerage said.

On the other hand, “DII (domestic institutional investor) inflows at $2.6 billion (vs $3.9 billion in Aug-21) remained strong but softened for the second month,” BofA Securities said.

FPIs $667-b asset base

FPI assets under management were at $667 billion as of September 2021, of which IT (+48 bps over TTM average) and energy (14.3 per cent) saw highest allocation YTD, while financials (34 per cent, -167 bps below TTM average), industrials (-59 bps MoM, -80 bps below TTM average) saw lowest allocations YTD. Discretionary (9.1 per cent, +39 bps MoM), telecom (3.6 per cent,+31bps MoM), utilities (3.3 per cent, +41bps MoM) saw higher allocations.

Despite softening, DII flows remain strong ($2.6 billion vs +$3.9 billion in Aug-21).

“Passive funds ($1.4 billion) saw highest inflows YTD. Within DIIs, there was a sharp rise in multi-cap ($481million, highest since March-21) and mid-cap ($182 million) funds. Arbitrage funds (-$203 million) saw outflows for the first time YTD.” As of September 21, both FIIs and DIIs are overweight on financials and staples and underweight on utilities.

Published on October 27, 2021

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