Global Liquidity Tracker: Global flows rebound after 3-wks, but Industrial turns negative; India’s relative performance stabilising since Jun’26 by Elara Capital
Global flows rebound after 3-wks, but Industrial turns negative; India’s relative performance stabilising since Jun’26
Global equity flows have rebounded after a three-week slowdown amid rising rate concerns, with weekly inflows of $65bn, the highest in four weeks. The recovery was led by the US, where inflows surged to $40bn from average weekly redemptions of $6bn over the preceding three weeks. GEM funds also returned to inflows of $378mn after averaging $390mn in weekly outflows over the past four weeks. Foreign flows into S.Korea turned positive at $1.1bn following five weeks of redemptions, while Taiwan recorded its 15th week of foreign inflows. This suggests that the latest round of redemption may have eased, at least temporarily.
Importantly, despite the reversal in flows into S.Korea and Taiwan, the quantum of incremental inflows remains well below the pace seen earlier in CY26. Brazil is the only EM where foreign flows have returned to levels last seen at the beginning of the year, with inflows of $1.8bn and $1.9bn over the past two weeks—the strongest since Jan’26. Including domestic flows, Brazil’s total inflow of $2.4bn this week is the highest on record.
India continues to see unabated fund outflows, a trend that has persisted since Aug’25. However, the current pace of selling remains below the peak seen during Apr–May’26.
Global Industrial flows have lost momentum, with funds recording consistent redemptions for first time since the AI trade began in May’25.
The US Industrial index has also started breaking below its 200DMA, while the number of constituents trading below this level has risen to its highest since Mar’25.
In contrast, Global Technology funds—which provide more direct exposure to US technology stocks—continue to attract strong inflows. Following the recent correction, weekly inflows have risen to a three-month high of $10.7bn. This divergence suggests that flows are rotating away from the broader AI ecosystem rather than from its core technology and hyperscaler beneficiaries.
Please refer disclaimer at Report
SEBI Registration number is INH000000933
