India records $106 million inflow; first positive weekly flow in 7 weeks: Report

New Delhi: India has recorded a net inflow of $106 million in the latest week, marking its first positive weekly flow in seven weeks, according to a report.

The turnaround follows cumulative outflows of nearly $5 billion over the previous six weeks, suggesting a gradual easing of selling pressure from India-focused funds, Elara Capital said in its report.

It noted that weekly outflows from such funds have dropped sharply from a peak of around $1.2 billion to about $180 million.

Exchange-traded funds (ETFs) led the recovery, attracting inflows of $220 million during the week. However, long-only funds continued to see outflows of approximately $400 million.

US-domiciled funds, which had been a key source of selling pressure in recent weeks, recorded inflows of $225 million after seven consecutive weeks of outflows totalling $3.3 billion.

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Despite the improvement, India-dedicated strategies have still posted outflows for nine straight weeks.

Globally, liquidity conditions remained supportive for a fourth consecutive week, with steady inflows across major fund categories. US equity funds attracted between $10 billion and $22 billion per week over the past month, while global-mandated funds drew $16 billion.

Emerging market flows also remained positive, with Global Emerging Market (GEM) funds seeing inflows of up to $2 billion weekly and emerging market growth funds attracting $1.4 billion.

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In contrast, Europe and China continued to experience outflows over the past five weeks, reflecting divergent regional trends.

Commodity-related equity funds saw softer flows following earlier gains during a period of heightened geopolitical tensions. Energy funds recorded moderating outflows, while gold inflows stabilised at a slower pace. Silver-related flows, however, remained weak.

IANS