Global funds sell net 89.8 bln rupees of India equities prior trading day: NSDL

Global funds sell net 89.8 bln rupees of India equities prior trading day: NSDL

Global investors have continued to show a significant appetite for Indian equities, despite the ongoing market uncertainty. According to the latest report from Elara Capital, global funds have sold a net amount of 89.8 billion rupees of Indian equities as of the previous trading day. This figure represents a substantial outflow, highlighting the persistent investor sentiment towards Indian markets.

The report indicates that global investors are increasingly turning to diversified equity funds as a safe haven during times of market volatility. Despite this trend, India-focused funds have experienced sustained outflows, with net redemptions continuing for the fifth straight week. The pace of these redemptions has slowed, with $78 million (Rs 647 crore) withdrawn in the latest week, down from $387 million (Rs 3,212 crore) the previous week and $700 million (Rs 5,810 crore) earlier in the month [1].

The majority of these redemptions have come from exchange-traded funds (ETFs), which lost $220 million (Rs 1,826 crore) in the latest week. In contrast, long-only funds recorded their first inflow in seven weeks, with $140 million (Rs 1,162 crore) flowing into these funds, driven by investments from HSBC Global Investment Funds and Ashoka White Oak ESG Funds [1].

The report also notes that India remains in its weakest flow phase since the October 2024–March 2025 sell-off, when $4.4 billion (Rs 36,520 crore) exited. Since July 2025, outflows have totaled $1.9 billion (Rs 15,770 crore), with a significant portion of these funds redirected to China [1].

In a separate development, ICICI Prudential AMC has established a new branch at GIFT City, Gandhinagar, under the IFSCA (Fund Management) Regulations 2025. This branch aims to channel international capital into India through various investment schemes, including equities, fixed income, alternatives, and hybrid offerings. The establishment of this branch serves as a global gateway, leveraging GIFT City’s infrastructure for seamless and tax-efficient market access [2].

These developments underscore the complex interplay between global investment trends and local market conditions. While global funds continue to show interest in Indian equities, the persistent outflows highlight the challenges faced by the Indian market. The establishment of the ICICI Prudential AMC branch at GIFT City suggests an effort to attract international capital and bolster India’s financial market.

References:
[1] https://www.moneycontrol.com/news/business/markets/india-focused-funds-see-fifth-week-of-redemptions-global-funds-shine-amid-uncertainty-13504615.html
[2] https://economictimes.indiatimes.com/mf/mf-news/icici-prudential-asset-management-company-inaugurates-new-office-at-gift-city-announces-india-focused-fund/articleshow/123502059.cms