India-focused funds continue outflows as global commodities attract investors

India-oriented equity funds have recorded another week of redemptions, with outflows reaching approximately USD 175 million in the seven days ended October 24. Large-cap long-only funds accounted for much of the selling, while mid-cap and small-cap funds saw about USD 120 million and USD 100 million withdrawn respectively. Meanwhile investors are diverting capital into gold and commodity funds, which attracted nearly USD 19.6 billion in a single week. Analysts warn that despite India’s strong fundamentals, sustained foreign flows are unlikely until trade-policy clarity and earnings stability improve.