Flows into commodity-related equity funds softened after strong performance during the period of geopolitical tension. Energy equity funds saw moderating outflows over the past three weeks, while gold flows stabilized at a slower pace compared to pre-conflict levels.

India records first weekly inflows in 7 weeks; global liquidity conditions remain supportive: Elara Capital

India recorded a net inflow of $106 million, marking the first positive weekly flow in seven weeks, even as global liquidity conditions remained supportive for a fourth consecutive week following geopolitical de-escalation, according to a Global Liquidity Tracker report by Elara Capital.

The inflow into India comes after cumulative outflows of about $5 billion over the previous six weeks, with selling pressure from India-focused funds easing. Weekly outflows from these funds declined from a peak of $1.2 billion to $180 million. Exchange-traded funds (ETFs) saw inflows of $220 million during the week, while long-only funds continued to witness outflows of $400 million. US-domiciled funds, which had been a major source of selling, recorded inflows of $225 million after seven consecutive weeks of outflows totaling $3.3 billion. India-dedicated strategies have now seen outflows for nine straight weeks.

Globally, liquidity conditions on the other hand have remained steady, supported by sustained inflows into major fund categories. US equity inflows stayed in the range of $10 billion to $22 billion per week over the past month. Global-mandated funds recorded inflows of $16 billion, while Global Emerging Market (GEM) funds attracted $1–2 billion weekly. Emerging market growth funds also saw inflows of $1.4 billion, driven largely by Taiwan-focused strategies.

On the other hand, Europe and China continued to experience outflows over the past five weeks.

Flows into commodity-related equity funds softened after strong performance during the period of geopolitical tension. Energy equity funds saw moderating outflows over the past three weeks, while gold flows stabilized at a slower pace compared to pre-conflict levels. Silver flows, however, remained weak and have not shown signs of recovery.

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.