The international research firm’s note came as Indian equity benchmarks had just concluded a volatile week, ending at record highs. This surge came amid a notable deviation from the predictions of exit polls conducted prior to the Lok Sabha elections, catching many market participants off guard on the result day.
Citi’s analysis indicates that the trend towards US-based investments reflects a broader confidence in the American market amid ongoing global uncertainties.
While Taiwan and India saw substantial inflows into their ETFs, the region witnessed widespread foreign selling, with $3.5 billion and $1 billion leaving Taiwan and India respectively during the same period. South Korea observed a foreign outflow of $0.7 billion.
China experienced an outflow of $1.1 billion via northbound connections, while Hong Kong saw a significant influx of $4.3 billion from China through southbound connections, indicating intricate cross-border investment dynamics within the region.
