New Delhi: Soaring oil prices have made global investors to pull out over $200 million (Rs791 crore) from India-focused funds during the last week of November, a latest report says.
“Funds geared to China and India, both big oil importers, posted outflows of $688 million and $208 million respectively as oil prices continue to test the $100 a barrel mark,” international fund tracking firm EPFR Global said in its latest weekly report.
Besides, funds focused on BRIC (Brazil, Russia, India and China) witnessed an outflow of $81 million in the week ended 30 November. But two countries --Russia and Brazil -- which have exportable oil reserves did not fare so badly.
Russia country funds posted modest inflows while it was neutral for Brazil, the report said. At the country level, investors last week again pulled back from China and reduced their exposure to emerging markets such as Korea and India that have big oil import bills.
However, money market funds continued to find favour as investors parked another $7.62 billion in them. This fund group has absorbed fresh money for the eighth time in the past nine weeks, the report said. Since early August net inflows have totalled over $115 billion.
“Despite the angst over the real scope of the global credit crisis, recent flow data suggests that investors are still as focused on returns as they are on risk,” EPFR Global analyst Cameron Brandt said.