Emerging Market Funds Up Allocation To India, Says BofA Securities

Emerging market funds have increased allocation to India as the domestic markets are better placed than peers, according to BofA Securities.

The EM funds have raised the allocation to India to 19.7% in July from 18.1% in June, while they trimmed the allocation to China to 36.2% from 39.4%, the financial services provider said in an Aug. 19 report.

Also, July saw capital flow from foreign institutional investors for the first time after nine consecutive months of outflows, the report said.

The FII inflows, continuing in August, indicate a positive outlook for the markets led by better growth aspects of India among large EM funds, softening of commodity and crude prices, and relative outperformance of the Indian rupee within the EMs, the report said.