India has seen the highest foreign fund outflows among its emerging south and southeast Asian peers so far this year as the rupee depreciates and global trade tensions escalate.
Overseas funds sold equity and bonds worth $6,910 million in the first half of this calendar year, according to Bloomberg data. Only the Philippines saw a net inflow of $872 million this year, the data show.
International funds pumped in $3,440 million in Thailand’s debt market—the highest so far in 2018. But it witnessed the worst equity outflow of $6,035 million during the same period.
The sell-off in India comes amid higher fuel prices that increase inflation risk and widen the current account deficit, putting pressure on the rupee.
The net equity outflow in India, which tapered off in the last six weeks, is at $720 million for six months—the least among its peers. Foreign investors sold debt worth $6,190 million so far in 2018, the Bloomberg data show.