While brokerage firms have said the foreign portfolio investors’ (FPIs) selling in India was primarily driven by the need to shift fund flows to China, some experts believe it was a play on US equities.

Read why has CLSA reversed its allocation strategy, raising investment in Indian equities while cutting China exposure.

China's recent economic woes, including trade tensions with the US and falling property prices, will likely continue to weigh on the Chinese equity market, it believes. In contrast, India is seen as a more attractive investment destination due to its strong economic growth and relatively low exposure to trade risks, CLSA said in a note.