Emerging market funds continue to flow into India, albeit at a slower rate, says Cameron Brandt

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cameron Brandt, Director of Research at EPFR Global, says India is still attracting emerging market fund inflows, but the pace of investment has slowed down.

“We are seeing a rotation in Asia, from India towards Taiwan. It’s not so much a direct rotation. But a definite shift in emphasis,” he noted.

After strong inflow of nearly ₹35,000 crore in March, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) together net sold equities worth around ₹8,650 crore in April, taking the net inflows so far this calendar year to ₹2,217 crore. 

Another reason for the slowdown in inflows in India, Brandt says, could be that investors are adopting the wait-and-watch approach amid the ongoing elections.

He sees a possibility of momentum returning once the elections are done, and also once people have a clearer idea about how the monsoon season will pan out.

Within the emerging markets universe, he also observes a recovery of interest in Latin America and China to some extent.

Brandt predicts a quiet summer for investment activity unless there’s a significant geopolitical event.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow