India-focused offshore funds, ETFs see $126 million inflows in Q2 The India-focused offshore funds and ETF category, comprising prominent investment vehicles through which foreign investors invest in the Indian equity markets, witnessed net inflows of $126 million for the quarter ended September (Q2), after 17 consecutive quarters of net outflows. The category had seen outflows of $1.58 billion in the previous quarter. The offshore funds segment saw net inflows of $103 million, while the ETF segment witnessed net inflows of $23 million. This is for the first time since the quarter ended June 2017 that both these segments received quarterly net inflows. While the Sensex gained 8.31% during the quarter, the BSE midcap and smallcap rose by 14.46% and 14.79%, respectively. FPIs bought shares in July ($618 million) and August ($6.44 billion), but sold $903 million in September as high inflation dashed hopes that the Fed would scale down its rate hikes. Also Read: Sebi plans to introduce new SCORES system with revamped website, mobile app Assets of other regionally diversified equity funds and ETFs dropped 7% to $7.1 trillion in Q2. The value of investments into Indian equities in regionally diversified funds stood at an estimated $249 billion in Q2, up 2.1%. The value of investment into Indian equities declined in the portfolios of Asia/Asia-Pacific funds, but rose in the portfolios of emerging markets and global funds in Q2. Interestingly, the allocation percentage to Indian equities rose across global funds, emerging markets and Asia/Asia-Pacific funds. One hundred and four out of 256 funds witnessed net outflows amounting to $525 million. Balance funds witnessed net inflows amounting to $651 million. UTI India Dynamic Equity USD Instl received the highest net inflows of $83 million, followed by iShares MSCI India ETF with net inflows of $72 million. Abrdn Indian Equity A Acc GBP saw net outflowsof $45 million, followed by RAMS EPF India Equities Port J USD, which saw net outflows of $38 million. Over a one-year period, UTI India Dynamic Equity USD Instl has seen the maximum inflows of $296 million, with its assets ballooning to $1.14 billion. IShares MSCI India ETF is the worst hit with net outflows of $1.03 billion. Despite massive outflows, IShares MSCI India ETF retains its top spot as the largest fund in the India-focused offshore fund and ETF category, with assets of over $4.2 billion. Given the sharp bounce-back in the performance of the Indian equity markets in Q2, nine of the 10 largest India-focused offshore funds and ETFs delivered positive returns. Ashoka India Opps A USD Acc was the top-performing fund, returning 11.2%. Sundaram India Midcap Cornerstone, a Singapore-domiciled fund with assets of $48 million, was the top-performing fund in the India-focused offshore fund and ETF category during the quarter. It delivered a 13.7% return and outperformed the category average (4.8%) and MSCI India USD Index (6.8%) by a huge margin.
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FII and DII trades: Foreign Institutional Investors (FII) have been net buyers of domestic stocks for successive days now. On Wednesday, FIIs pumped in Rs 2,347 crore. Domestic Institutional Investors (DII) have been net sellers, pulling out Rs 510 crore yesterday.
IPO watch: Syrma SGS Technology enters the final day of bidding today. So far the issue, that opened last week, has been subscribed 2.27 times. Retail investors have subscribed their portion 2.66 times while NIIs have bid for their quota 3.58 times and QIB portion has been bid for 0.71 times.