Global liquidity conditions remained supportive for the fourth consecutive week following geopolitical de-escalation, with strong inflows into US, Global Emerging Markets (GEM) and global-mandated funds, according to Elara Capital’s latest Global Liquidity Tracker.
The report noted that US equity inflows stayed robust in the range of USD 10 billion to USD 22 billion weekly over the past month.
Global-mandated funds registered a five-week high inflow of USD 16 billion, while GEM funds continued to attract steady inflows of USD 1 billion to USD 2 billion per week.
Emerging Market Growth funds also posted a record weekly inflow of USD 1.4 billion, largely driven by Taiwan-focused strategies.
However, Europe and China continued to witness persistent investor redemptions over the last five weeks.
For India, flows turned marginally positive for the first time in seven weeks, with net inflows of USD 106 million across allocation and dedicated funds, following nearly USD 5 billion of redemptions over the previous six weeks.
The improvement was largely attributed to a sharp moderation in selling pressure from India-focused funds, where weekly outflows narrowed significantly from a peak of USD 1.2 billion to USD 180 million. Despite this, it marked the ninth straight week of outflows from India-dedicated strategies.
Within Indian flows, exchange-traded funds (ETFs) saw inflows of USD 220 million, while long-only funds continued to face redemptions of USD 400 million. Encouragingly, US-domiciled funds posted inflows of USD 225 million after cumulative outflows of USD 3.3 billion over the prior seven weeks, suggesting early signs of stabilisation.
The report also highlighted softer flows into commodity equities after the war period. While commodity-focused funds saw outflows during the peak of conflict, inflows have not recovered meaningfully despite easing tensions.
Energy equity funds have shown moderating outflows over the past three weeks, while gold flows have stabilised, albeit at slower levels than before the conflict. Silver flows, however, remain weak since January 2026.
Analysts said the data suggests investors are gradually rotating back into broader risk assets, while India’s stabilising flows could support sentiment if foreign selling pressure continues to ease.
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