According to the Institute of International Finance, monthly portfolio flows into EM weakened to their lowest level in 2015 in June’15. India witnessed its highest FII outflows in 23 months (US$961mn). However, DIIs lent strong support as they net invested US$1.88bn – the highest monthly investments by DIIs in more than five years. Unsurprisingly, DII inflows were led by domestic MF investments (~US$1.4bn), which have been witnessing impressive inflows into their equity funds for more than a year now. DIIs ex-MFs (chiefly insurance companies) were also net buyers for the third straight month. On foreign flows, other Asian countries also witnessed heavy outflows with Taiwan and Korea posting net FII outflows of US$2.6bn and US$971mn respectively.
