According to data assessed by Kotak Institutional Equities, foreign portfolio investors made significant investments in financial and industrial companies in December 2023, with consumer discretionary and IT firms following closely behind. 2023 witnessed FPI net flows of $6012 million in the financial sector and $7127 million in industrial equities.
Allocations to China and India constitute 45% of the average Asia ex-Japan fund portfolio. Asia ex-Japan funds’ allocations to India increased to 19.2% in December from 18.7% in November, whereas allocations to India by Global Emerging Market funds (GEM) increased sharply to 17.5% in December from 16.6% in November.
Largest quantum of FPI AUC comes from US-based investors FPI AUC of top-five countries investing in India, March fiscal year-ends, 2020-24 (US$ bn)
According to the Kotak research, allocations to India by Asia ex-Japan non-ETFs grew to 19.7% in December from 19.2% in November, while allocations by GEM non-ETFs increased to 15.9% in December from 15.1% in November. GEM funds' financial contributions to India jumped dramatically from 16.6% in November to 17.5% in December.
USD 2 billion in inflows into listed funds were recorded in December 2023, with ETF inflows taking the lead. $3.1 billion in inflows were recorded by India-dedicated funds, including of $1.1 billion in non-ETF inflows and $2 billion in ETF inflows; in contrast, $247 million was removed from GEM funds. India Divided into various geo-focused funds and investing strategies (ETFs and non-ETFs), EPFR fund flows and AUM.
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