India Fund Flows Stabilize: $184M Inflow Amid AI Trade Shift

India-focused funds recorded a significant weekly inflow of $184 million, marking the strongest performance since March and suggesting a stabilization in foreign investor sentiment. This occurs even as global industrial funds experienced their first outflow since the AI-driven investment surge began in May 2025.

Key India Fund Movements

• Weekly India inflow: $184 million
• Net India inflow: $17 million (after $8.6 billion withdrawals since February)
• India-focused ETFs attracted: $118 million
• Active long-only funds: sustained outflows of $101 million

While India sees stabilization, the broader global landscape reveals shifting investment priorities. Industrial funds, for instance, registered negative rolling four-week flows for the first time since the AI trade initiated in May 2025. This contrasts sharply with the continued robust inflows into technology funds, which are directly benefiting from the AI boom.

Global Sectoral Shifts

• Gold funds: largest weekly inflow since mid-April
• Silver funds: showing signs of stabilization after months of heavy redemptions
• Consumption-focused funds: steady outflows since November 2025, though the pace has slowed

Emerging markets are witnessing selective buying following a 10 percent decline in the EM Index. Global Emerging Market (GEM) funds attracted $3.7 billion over two weeks, indicating renewed interest. Meanwhile, US equity funds experienced a modest $6 billion outflow, signalling a moderation in the exceptional inflow momentum observed post-SpaceX listing.

Asian Market Dynamics

• Taiwan and South Korea: foreign fund flows decelerating
• Taiwan’s domestic funds: recorded their second-largest weekly inflow of $4.8 billion

The overall data suggests foreign investor sentiment towards India is becoming less negative. This stabilization in Indian fund flows is notable against a backdrop of varied global investment trends influenced by the ongoing AI trade momentum.