India Inflows Slow: Dedicated Funds Sell Amid Broader EM Strength

• India's foreign portfolio inflows slowed to $190 million this week, down from $414 million, mainly due to $200 million in redemptions from India-focused funds.
• Long-only strategies contributed $182 million in outflows, and small-cap funds saw their largest redemption in two months ($54 million).
• India's foreign flows have been volatile, with redemptions from India-dedicated funds resuming since July 2025, following a brief ETF-driven inflow period.
• Global emerging market funds recorded $2.8 billion in inflows, extending a five-week uptrend, as investors rotated towards EMs on expectations of a weaker US dollar.
• China continued to draw stable inflows, Brazil hit a six-month high of $402 million, and commodity-linked funds experienced a significant acceleration in activity.

Why It Matters: India's investment appeal is weakening, contrasting with broader emerging market gains.