Foreign portfolio investors invested heavily in financial and industrial stocks in December 2023, followed by consumer discretionary and IT stocks, shows data analysed by Kotak Institutional Equities. In the calendar year 2023, financials saw FPI net flows of $6012 million and industrial stocks saw flows of $7127 million.
Country allocations. Allocations to China and India constitute 45% of the average Asia ex-Japan fund portfolio. Asia ex-Japan funds’ allocations to India increased to 19.2% in December from 18.7% in November, whereas allocations to India by Global Emerging Market funds( GEM) increased sharply to 17.5% in December from 16.6% in November. Largest quantum of FPI AUC comes from US-based investors FPI AUC of top-five countries investing in India, March fiscal year-ends, 2020-24 (US$ bn)