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

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.