EPFR says oil worries keep foreign investors cautious on India
In short
Foreign investors are still cautious about India, according to EPFR Global. The report says higher oil prices and India’s oil dependence are part of the reason.
Global bond funds are pulling in $15-20 billion each week. It is not stated how much money is moving in or out of India right now.
What the reporting says
Foreign investors continue to stay cautious on India because higher oil prices and the country’s oil dependence are weighing on emerging-market allocations, according to EPFR Global commentary cited in publisher-supplied reporting. The report also says global bond funds are drawing $15-20 billion in weekly inflows despite rising yields and fiscal concerns in major economies. The immediate consequence for India is continued pressure on foreign flows, while the reporting does not quantify the India-specific outflow.
Why it matters
EPFR Global, as cited by CNBC TV18 Market, says foreign investors remain cautious on India because higher oil prices and India’s oil dependence are hurting its appeal in emerging-market allocations. The report also notes strong weekly inflows of $15-20 billion into global bond funds. The likely impact is softer foreign demand for Indian markets, but the reporting does not provide a fresh India-specific flow figure.