New Delhi, Feb 23 (IANA) India dedicated funds have witnessed consistent inflows for the 49th consecutive week, with $712 million coming in this week following $766 million in the previous week. Largecap funds received the largest portion of these inflows, totaling $631 million. Additionally, smallcap funds have also shown signs of revival, attracting $280 million in the past nine months. The majority of India flows continue to come from US investors ($215 million), followed by Ireland ($177 million) and Japan ($124 million) investors, as per a report by Elara Securities.
The report highlighted that countries like the US, Japan, and India are experiencing strong inflows from both domestic and foreign investors, while China is witnessing strong domestic inflows but weak foreign flows. Domestic investors in Chinese equity have seen the strongest inflows in the past month since 2015. Overall, global liquidity remains favorable, with most markets observing robust domestic flows.
According to the report, “China funds have recently outperformed India funds, marking a significant trend shift. The outperformance was notable in May 2022 and from November 2022 to February 2023, with a remarkable 40 per cent increase.” While domestic flows in China are strong and showing outperformance, it remains to be seen if foreign flows will start shifting towards the country in the future.
The report suggests that despite the strong domestic flows and the beginning of outperformance, there are currently no signs of foreign flows shifting towards China. The dynamics of the global fund flow scenario are evolving, and it will be crucial to monitor any potential shifts in the coming months.
–IANA
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