Outflows of $599 million from non-ETF India-dedicated funds led to the net selloff at $301 million from this category in July, a report by Kotak Institutional Equities showed Monday, citing data from Emerging Portfolio Fund Research.
At the same time, the country is marginally benefiting from funds being shifted from the US to global emerging market (GEM) funds. The report showed that this number increased to $820 million, from $563 million in June.
According to the report, “Asia ex-Japan fund allocations to India declined to 15.1% in July, from 16.3% in June, whereas allocations to India by GEM funds declined to 17.5% in July, from 18.7% in June.”
Among the emerging markets, China funds received the highest inflows at $4.3 billion. Overall, listed funds witnessed inflows of $842 million, led by ETF infusions of $1.6 billion, which were offset by non-ETF outflows of $759 million.
So far in 2025, FPIs have sold $10.86 billion worth of Indian stocks, the report said. More than half of the outflows were seen in the IT sector at $5.84 billion.