Market round-up: Global funds reduce India allocation

Global emerging market funds reduced their exposure to 11.3% in end-August, from 12.1% in end-May


Funds dedicated for investments in the Asia ex-Japan region reduced exposure to 13.6% from 14.1% during the same period.
Funds dedicated for investments in the Asia ex-Japan region reduced exposure to 13.6% from 14.1% during the same period.

Data collated by Emerging Portfolio Fund Research (EPFR) shows that global funds have reduced allocation to India in the past three months.

Global emerging market funds reduced their exposure to 11.3% in end-August, from 12.1% in end-May.

Likewise, funds dedicated for investments in the Asia ex-Japan region reduced exposure to 13.6% from 14.1% during the same period.

Market participants point out that this is largely because of profit-booking, given the sustained rise in Indian stocks this year.

Private insurers lost market share in September

Private insurance firms lost market share in September although Bajaj Allianz, SBI Life and Birla Sun Life grew faster than the overall industry, according to a report by JM Financial Ltd.

In terms of annual premium equivalent (APE), Bajaj Allianz grew 130%, SBI Life 51% and Birla Sun Life 47% against the industry growth of 29%.

Reliance Life contracted 10%, the report said.

Life Insurance Corporation of India (LIC), which has more than 60% market share, saw business grow 29% from a year ago.

For the industry, low-margin group insurance premiums went up 78% year-on-year with LIC witnessing 72% growth and private insurers 94% growth.

Mexican peso rallies on Trump woes

The Mexican peso has rallied by 7% since the time of the first presidential debate late last month.

It has made up for most of the losses incurred in the preceding month.

At that time, the markets were concerned that a Donald Trump win in the US elections will result in weaker relations with Mexico and hurt the economy.

In the past month, several allegations have been made against Trump, and news reports suggest these have hurt his prospects in the elections.

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