India fund flow momentum stabilises; Energy leads global flows: Elara Capital

The report stated that inflows into US-domiciled India-focused ETFs totalled $182 million, the strongest weekly inflow since June 2025. These inflows helped offset continued selling from Japan-domiciled funds, offering tentative near-term relief.

• India-focused funds saw a $67 million net inflow after six weeks of redemptions
• US-based India ETFs saw $182M inflow, balancing Japan fund outflows
• Energy equity funds recorded $4 billion inflow, the largest since September 2008

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After six consecutive weeks of sustained redemptions,India-focused fund flows showed early signs of stabilisation this week, according to Elara Capital’s Global Liquidity Tracker.  The report highlighted a marginal inflow of $67 million into India-focused funds during the week, marking the first net inflow after a prolonged period of outflows. However, the broader trend in flows has remained fragile and intermittent since late 2024.

Elara Capital stated that long-term momentum in India-focused fund flows strengthened steadily from January 2023 through June 2024 before reversing in the aftermath of the election results. The redemptions that followed have effectively reset flow momentum back to early-2023 levels. "The subsequent redemptions have effectively reset fund flow momentum to early-2023 levels, indicating that one major phase of outflows has largely played out. Attention now turns to whether flows stabilise at these levels or begin to rebuild. Japan currently remains the weakest source of inflows," the report said.

The report stated that inflows into US-domiciled India-focused ETFs totalled $182 million, the strongest weekly inflow since June 2025. These inflows helped offset continued selling from Japan-domiciled funds, offering tentative near-term relief.

At the global level, the Global Liquidity Tracker highlighted energy as a key area of strength within sectoral flows. Energy equity funds recorded inflows of $4 billion during the week, the largest weekly inflow since September 2008. The report noted that the State Street Energy ETF, which is dominated by large-cap US energy stocks, is currently trading near a key resistance zone.