Indian Equity Fund Inflows Rise 8.1 Percent in February
Indian equity fund inflows rose 8.1 percent in February as a U.S. trade deal boosted sentiment. Foreigners turned net buyers despite offloading tech stocks.
Equity mutual fund inflows in India rebounded in February, marking the first increase in three months as investor sentiment was bolstered by stabilizing corporate earnings and a landmark trade agreement with the United States. Despite a one-time impact from new labor codes, improving earnings growth supported the market turnaround. According to data from the Association of Mutual Funds in India, monthly inflows rose 8.1% to reach 259.78 billion rupees ($2.82 billion).
While overall equity demand strengthened, inflows via systematic investment plans (SIPs) saw a marginal decline to 298.45 billion rupees from 310.02 billion in January, a drop attributed to fewer trading sessions during the month. Investment trends also shifted away from safe-haven assets, as gold exchange-traded funds (ETFs) saw inflows plummet to 52.55 billion rupees, down significantly from the 240.4 billion rupees recorded in January.
