- India continues to be the most favoured destination despite global investors reducing their exposure to emerging market equities, said Bank of America Merrill Lynch (BoF-ML).
- India topped the global emerging market investors’ country preference chart followed by China and Poland in the second and third place, respectively as Asia Pacific investors increased their allocation to India and Taiwan in June.
- Globally investors have moved out of equities into cash ahead of an expected US Fed rate hike.
- As per latest data from depositories, foreign investors pulled out more than Rs 3,300 crore from Indian stock markets so far this month, on account of better returns from Asian peers.
- Other countries in the list included Turkey, Indonesia, Mexico, Korea, Thailand and South Africa.
- China growth prospects have come down sharply since April and 70% of global investors believe China equities are in a bubble.