Indian mutual fund flows boosted by domestic buyers

Amay Hattangadi, executive director at Morgan Stanley Investment Management, says despite the volatility in global markets led by events in Greece and China, the Indian markets have been quite steady in relative terms

Indian markets showed robust performance in the first half of the year, notwithstanding the softness of the MSCI India index (which fell 3.61%) in the three months to the end of June.  While foreign investors were overall net sellers in June, during the year to date they have bought equities worth $6.3bn. Domestic mutual fund institutions, meanwhile, have purchased equities worth $1.5bn and remained buyers for the 14th month in a row. Indeed, equity flows have been positive in domestic mutual funds for more than three quarters now, thus marking strong retail participation. This marks ...