FIIs pour $7.8 bn into Indian markets in January-May 2014: HSBC
29 May 2014
India is the toast of foreign institutional investors (FIIs), which have pumped in $7.8 billion (Rs45,974 crore) into its capital markets so far this year, with net inflows of $2.3 billion in May alone.
Of the $18.8 billion worth of stocks that foreign investors bought in Asia (excluding Japan), between January and 26 May, India received $7.8 billion, followed by Taiwan 6.3 billion and Indonesia $3.6 billion, respectively, HSBC said in a report.
"India still the most loved market in the region; Malaysia the least loved market," HSBC said in a research note.
The HSBC study found FIIs being more selective in their investments, confining investments to countries like India, Taiwan and Indonesia.
Korea and the Philippines received $0.9 billion and $1 billion, respectively, while Thai equities being sold, amidst political uncertainty.
FII investments into emerging economies have already crossed 78 per cent of the total inflows in 2013 and HSBC expects FII investments in 2014 to be much better than last year.
Unlike FIIs, mutual funds have been cautious in their approach to Asian markets and they have opted to offload $1.2 billion of stocks in Asian markets, excluding Japan, over the last four weeks ending 21 May 2014, HSBC said quoting EPFR Global.
Mutual funds, however, continued to purchase Indian equities and turned slightly positive on China, with an improvement in manufacturing activity there in May.
"Mutual funds are most overweight on Indian equities, but the exposure has come off compared to three months ago," HSBC said.