INDIA SHINES IN EM RALLY AS US DOMESTIC FLOWS WEAKEN, GOLD SEES SELL-OFF: ELARA SECURITIES

India continued to see strong foreign investment during the week, according to a latest report. India recorded $326 million in net inflows following last week’s $724 million which was the highest in nearly a year. According to the Global Liquidity Tracker by Elara Securities, the momentum in Indian equities is part of a broader emerging markets (EMs) trend, as capital continues to flow into EMs for the fourth consecutive week.

According to the report, the $257 million specifically targeting Indian markets this week, primarily focused on large-cap segments. Amongst emerging markets (EMs) India, along with Taiwan and Brazil, are leading the pack, while China and South Korea follow behind. Much of this global EM inflow has been directed toward exchange-traded funds (ETFs), the report noted.

Among India-dedicated funds, the report added that US-domiciled vehicles led with $100 million in inflows, followed by Luxembourg ($60 million), Ireland ($40 million), and France ($49 million). French funds have contributed around $110 million in cumulative inflows over the past six weeks. On the other hand, outflows from Japan-focused funds have ceased, but inflows have not yet resumed, the report added.

On the other hand, after two years of steady investment, US-based funds have witnessed outflows in six of the past seven weeks, marking the longest stretch of withdrawals since mid-2022, the report noted.

Beyond equities, junk bonds have seen a resurgence, with $785 million in inflows this week, building on a massive $3.6 billion inflow last week — a sharp reversal from five weeks of consistent redemptions. On the other hand, gold funds have seen a continued sell-off, marking their second consecutive week of outflows. Investors pulled $734 million this week, following a substantial $2.6 billion withdrawal the previous week.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

2025-05-09T15:38:45Z