Non-ETFs pull $1 bn out of India in Sep; global emerging market funds fall

FPIs have been pulling out money from EMs in the past few months. In September, India saw $931 mn of outflows, driven by non-ETF outflows of $1 bn. Other regions seeing sizeable outflows were Taiwan ($832 mn) and Russia ($566 mn). China was an outlier with inflows of $2.1 bn. Shares of consumer discretionary and consumer staples witnessed the most selling in 2018, to the tune of $2.1 bn and $1.3 bn, respectively. 

IT and healthcare sectors saw the most buying interest with inflows of $774 mn and $194 mn, respectively. Allocation to India by Asia ex-Japan funds declined to 12% in September from 13.2% in August, while that by global emerging market (GEM) funds declined to 9.7% from 10.6%. 

Allocation by Asia ex-Japan non-ETF funds declined to 12.5% from 13.4%, while that by GEM non-ETF funds declined to 10% from 11%.