India has recorded the highest outflows from foreign portfolio investors (FPIs) among emerging markets (EMs) so far this month, despite steady flows from domestic investors. Bloomberg data reveals that global liquidity has not been supportive of Indian markets.
At the beginning of the month, most EMs experienced outflows due to concerns about a potential US recession and the reversal of Japanese carry trades. However, as fears of a recession abated and prospects for a US Federal Reserve (Fed) rate cut increased, outflows reversed in most markets, allowing them to recoup losses.
The benchmark S&P BSE Sensex has
