Offshore India ETFs pull money out in July, first time in 16 months; sell equities worth Rs 750 crore

MUMBAI: Investors in offshore India-dedicated exchange traded funds (ETFs) pulled money out in July 2015 — the first time in 16 months. These India-dedicated ETFs have sold equities worth nearly Rs 750 crore, or $120 million, in July after investing nearly $6 billion in the first half of 2015. Analysts said investors redeemed money from these funds amid the decline in local stocks in the wake of the turmoil in Chinese stock market and the Greek debt crisis. “China and Greek crises, poor quarterly results and logjam in the Parliament have prompted some investors to exit India dedicated ETFs in the second half of July,” said U R Bhat, managing director, Dalton Capital. “Pending bills in the Parliament have contributed to the growing scepticism among global investors about the India growth story.” Foreign institutional investors have bought equities worth Rs 5,635 crore in July 2015, according to the Securities and Exchange Board of India data.