ETFs
Foreign investors prefer US ETFs over India, says Citi
The note from the international research firm comes as Indian equity benchmarks have just concluded a volatile week, ending at record highs. The rise came amid a notable deviation from predictions in exit polls conducted ahead of the Lok Sabha elections, catching many market participants off guard on results day.
Citi’s analysis indicates that the trend toward U.S.-based investments reflects broader confidence in the U.S. market amid continued global uncertainties.
While Taiwan and India saw substantial inflows into their ETFs, the region witnessed widespread foreign selling, with $3.5 billion and $1 billion flowing out of Taiwan and India respectively over the course of the same period. South Korea observed an outflow of foreign capital of $0.7 billion.
China saw an outflow of $1.1 billion via northbound connections, while Hong Kong saw a large inflow of $4.3 billion from China via southbound connections, indicating a complex dynamic of cross-border investment in the region.