Page 82 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

India: A preferred investment destination among EMs

For institutional investors, India has long been an emerging market favourite—be it in its
share of investments among peer nations, its integral part of the BRICS grouping, or the
niggling India-China hyphenation, which has a volatility of its own. India has, over recent

While many EMs years, witnessed its share among indices go up—albeit one could argue it is still modest
given its market size.

was the star gainer— This ‘original’ love for India has in fact exaggerated during the pandemic. While many EMs
raking in the highest-
among-EMs FII equity

CY20 and CY21 capital access has been domestically driven, it has only consolidated its position among
peers, in what is still the largest driver of India’s capital, in stock terms.

35 27
25 Highest FII
15
5
( USD bn) (15) -1 -1 -3 -4 -7 -10
(5)

(25)
(35) -31
(45) -43

(55)
India Indonesia Taiwan Philippines South Africa Malaysia Vietnam Thailand Sri Lanka

Source: Bloomberg, Edelweiss Research

Rise of the retail investor

This decade is set to be dominated by retail investors. In a post-pandemic period, the share
of retail investors has shot up. Stellar equity performance since the pandemic’s onset (on

has helped in channelisation of retail savings into equity markets.

While retail investors were reliant on mutual funds’ advice in recent years, post-pandemic
they have been driving the activity themselves.

80 Edelweiss Securities Limited