EM funds cut India exposure, favoring Hong Kong, China, and South Korea amid FPI sell-off in July.

• Nomura data shows 71% EM funds underweight India, up from 60% in June this month.
• FPIs sold $2 billion in July, another $2.5 billion in August, dragging Nifty down 3% in the local market.
• Domestic institutions kept buying, and mutual fund inflows hit record SIP contributions in July despite the outsiders.