India’s foreign flow momentum slowed this week as US domestic funds saw redemptions: Elara Capital

During the week, US largecap funds recorded their sharpest weekly outflow of the year at $9.7 billion, making this the thrid consecutive weeks of redemptions.

Foreign investor interest in India moderated this week, with net inflows slowing to $73 million, sharply down from $388 million over the prior two weeks, according to Elara Capital's Global Liquidity Tracker.

India-focused funds too saw their first weekly outflow since April 9, with a total selling of $44 million worth of shares.

The report added that US domestic fund saw outflows surge to a five-week high of $10 billion, continuing a trend of redemptions in 10 of the last 12 weeks, and totalling $40.8 billion since mid-March. On the other hand, foreign investors remained net buyers in the US market, contributing $1.3 billion this week. Among the foreign investors in the US market, Japan-domiciled funds led with $9.5 billion in inflows since April 2025, accounting for 38 percent of total foreign flows. They were followed by Ireland at 32% with $7.8 billion and Canada at 19% with $4.6 billion.

During the week, US largecap funds recorded their sharpest weekly outflow of 2025 at $9.7 billion, making this the third consecutive week of redemptions.

Emerging markets (EMs) extended their foreign inflow run to eight weeks, led by South Korea ($704 million) and Brazil ($239 million).

Gold funds continued to see strong recovery, drawing $3.9 billion as inflows this week. Over the past three weeks, gold funds have accumulated $12.4 billion, nearly erasing the previous month’s losses.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.