There could be light at the end of the tunnel for emerging markets like Brazil, Russia, India and China (the so-called Bric countries). A Bank of America Merrill Lynch March global survey of 213 fund managers has found their outlook on these markets favourable. The survey, entitled Bric is Back, states, More optimism has translated into higher allocation to global emerging market equities, first overweight in seven months. Investors said they are overweight in every Bric market.

Similarly, EPFR Global, which tracks global fund flows, said several funds had pulled funds from money market funds and started deploying them in equities. There was evidence of a modest recovery in risk appetite, at least on the equity side. Money market funds, a bellwether for investor risk aversion, recorded net outflows of $381 million through March 11, the report states.

Emerging market equity funds have been the more resilient in flow and performance terms since the beginning of the year, in part because investors still think their fiscal profiles look a lot better than those of most developed markets, says EPFR managing director Brad Durham.

While Indias year-to-date performance remains negative, overseas investors have been extremely positive on the country and net sold only on two occasions since March 12, making a net investment of $217.2 million. Fund managers, however, reckon that sustained buying would take place only after post-election political clarity is achieved.