Elara Securities has reported that India's dedicated funds have maintained a streak of 49 consecutive weeks of inflows. The latest influx amounts to $712 million this week, following a previous week's inflow of $766 million. Among these, largecap funds have attracted the largest share, totaling $631 million.
There has been a notable resurgence in smallcap funds as well, with a total inflow of $280 million over the past nine months. The majority of investments into Indian funds are from US investors ($215 million), followed by Ireland ($177 million) and Japan ($124 million) investors, according to the report.
The tracker also highlights countries experiencing robust inflows from both domestic and foreign investors, including the US, Japan, and India.
Conversely, China is witnessing robust domestic inflows but relatively weak foreign flows. Domestic investors' inflows into Chinese equities have been particularly strong over the past month, reaching levels not seen since 2015.
Overall, the global liquidity environment remains favorable, with most markets observing strong domestic flows, the report notes.
Elara Securities' report also underscores a shift in performance dynamics, with China funds beginning to outperform India funds. This trend, reminiscent of May 2022 and November 2022 to February 2023, has sparked interest among investors. However, despite the domestic market's strength and burgeoning outperformance, the report suggests that it remains to be seen whether foreign flows will pivot towards China in the near future, as there are currently no indicators of such a shift.
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