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Foreign fund flows into US markets continue since Oct’24 although pace is slowing marginally. We are seeing some supply from Domestic funds in US since last 2 weeks. Importantly, inflows into Europe funds accelerate to the highest level since Jan’23 as Euro Stoxx 50 index has rallied back to the highs made in the year 2000. Global investors are gearing up to play the big break out there. Total inflows of $2.5bn led by Germany ($930mn), Switzerland ($824mn), France ($658mn) and Netherlands ($344mn). Overall, trend in DM flows remain strong.

India flows continue to remain under pressure for 5 th month with more redemptions of $405mn this week. As mentioned earlier, large part of pressure on India flows since start of this calendar year is from Dedicated funds. India saw outflow of $405mn this week out of which $238mn was from Dedicated funds. India redemptions from US funds halt for the first time since Oct’24. However, pressure is emerging from other regions viz. Ireland ($-103mn), Luxemburg (-$88mn) and Japan (-$46mn). UK funds also pulling out gradually since Nov’24 with total outflow of $435mn. US fund flow into India is mostly through ETFs. However, flows from other regions are mostly in active funds. As outflows from other regions accelerate, we see bigger stock level correction

Foreign fund flow into China is improving since the past 2- weeks. This week’s inflow of $573mn is largest since Oct’24. Global fund managers actions are showing a gradual shift towards China from India. Along with improvement in China flows, we are also seeing revival in Commodity fund flows (Sector fund). EM Commodity/Materials fund saw largest inflow since Aug’23 of $92mn. The long term flow momentum of Commodity funds is trying to show some revival from lows of last 17-years

JPY denominated India sector allocation; Materials/Banks at decade lows. Cap Goods/Utilities reversing from highs

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