India sees third-largest FII outflows in Asia

In 2014, FIIs had pumped US$13.4bn into Indian equities and for the year till 10th August, their net purchases stand at US$7.4bn.

Outflows from Indian stocks in the past one month have been the third worst in Asia, behind Japan and South Korea. The foreign institutional investors (FII) have sold Indian shares worth US$3.3bn since 10th August.

In 2014, FIIs had pumped US$13.4bn into Indian equities and for the year till 10th August, their net purchases stand at US$7.4bn.

The benchmark BSE Sensex is now down 9.5% year-to-date in rupee terms and 14.4% in US dollar terms, making India the third worst performer in Asia.

Japanese shares have seen the largest outflows at US$13bn while South Korea comes second at US$3.7bn.

Part of the selling in Indian shares can be attributed to overall redemptions faced by the emerging markets (EM). EM funds have seen redemptions worth US$24bn in the last four weeks, according to EPFR.