International investors appear to be taking funds out of Indian stocks and plowing them into China, Taiwan and South Korea, Reuters reported. Foreign investors in India appeared concerned about a proposed minimum alternate tax (MAT) there that seeks to retake unpaid taxes on short-term stock gains and bond profits. “The debate over retro taxes on capital gains is noise for investors, who may take the opportunity to reduce their Indian equity exposure and look for value elsewhere, like China A market, that has fantastic momentum and trading at attractive multiples relative to Indian equities despite the recent rally,” said Arild Johansen, fund manager at FMG EM funds told Reuters.
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