India witnessed inflow of a staggering USD 1.2 billion from listed foreign funds in July after seeing an outflow of USD 332 million in the preceding month, says a report.
Overall, the country has seen an outflow of USD 800 million this year.
“Listed fund flows to India recorded inflows worth USD 1.2 billion in July…,” said a Kotak Institutional Equities report.
The listed funds — passive exchange-traded funds (ETFs) and active non-ETFs — generally account for a large part of foreign portfolio investor (FPI) activity in India.
ETFs have seen higher inflows as compared to non-ETFs during the month under review. Indian market witnessed inflow worth USD 850 million and USD 383 million in ETFs and non-ETFs segment respectively.
The report, which offers a comprehensive view on fund flows of listed funds into India and other emerging markets, said net FPI activity across emerging markets remained positive in July.
“Net FPI activity across emerging markets remained positive, with USD 6 billion and USD 4 billion inflows to Taiwan and South Korea. Net FPI activity continues to remain positive on the back of other participants, especially sovereign wealth funds (SWFs), whose share in FPI assets under custody remains around 11 per cent now,” it added.