India's Foreign Inflows Soar to 8-Month High Amid Global Risk Appetite Surge: Elara Capital

• India recorded $650 million in foreign portfolio inflows, an eight-month high, driven by improved global risk appetite, as per Elara Capital.
• Globally, US equity funds attracted $79 billion, the highest weekly inflow in a year, while money market funds saw $44 billion in redemptions.
• Emerging Markets (EM) funds received $3.2 billion, a three-month high, with China seeing $10.3 billion and Brazil $685 million in inflows.
• Commodity-linked funds also saw significant allocations, with physical industrial, precious metal, and commodity equity funds recording multi-week highs.
• Elara Capital cautions that large US equity inflows can sometimes precede market peaks, and highly correlated EM inflows have historically led to market consolidation.

Why It Matters: India's foreign inflows surge, reflecting a global shift towards risk assets, but Elara Capital warns of potential market consolidation.