Indian equity markets have accounted for nearly half of the foreign fund outflows from the emerging markets (EMs) in the current calendar year.
Foreign portfolio investors (FPIs) have trimmed their exposure to Indian markets by $2.6 billion since the beginning of 2016 – only second to South Korea, which witnessed outflow of $2.64 billion, Bloomberg data showed. Foreign funds have withdrawn $5.32 billion from the EMs so far in 2016.
Selling by FPIs is in contrast with the previous calendar year when Indian markets outperformed other EMs. In CY15, India witnessed FPI inflows of $3.27 billion even as foreign funds were net sellers across other emerging markets such as South Korea, Indonesia and Taiwan, data showed.
