Foreign fund outflows from India continued for another week but moderated sharply, while Taiwan and South Korea witnessed heavier redemptions after months of strong inflows, according to Elara Securities’ latest Global Liquidity Tracker.
India-focused funds saw outflows of around $100 million in the latest week, compared with redemptions of $170 million, $270 million and $366 million in the preceding three weeks.
The pace of outflows has therefore eased, although the broader flow picture for India remains weak. Long-only funds continue to see redemptions, with cumulative inflows into India since September 2023 now fully reversed, the tracker said.
However, India's relative position has improved as fund flows into other Asian markets have deteriorated. Taiwan- and South Korea-dedicated funds have now recorded outflows for five consecutive weeks. The recent redemptions are notable as they follow several months of strong inflows, which had also made positioning in these markets increasingly crowded.
Incremental redemptions from Taiwan and South Korea have recently exceeded those from India, resulting in relative flow outperformance for India and China over the past two months, according to Elara.