India dedicated flows expanded to a 3-month high of $713 million, again all led by Large cap flows.
This is the sharpest and most consistent leg of India dedicated inflows since 2003-2006 period.
It started since Oct’22 and pace is consistently expanding, says a report by Elara Securities.
EM flows expand to 4-month high of $4 billion led by sharp recovery in China and continuous flows into India. However, EM flows remain concentrated in large cap funds only.
Post the FED comments on reversing rate hikes, euphoria is building up in Global flows.
US flows expanded to 18-month high of $26.3 billion, the report said.
There was a strong rush of flows into US Mid and Smallcap funds, which have barely participated in the recovery from Oct’22 lows.
S&P 500 is 2 per cent away from its all-time highs but Russell 2000 index is still 20 per cent lower.
S&P Equal weight index has started outperforming the weighted index for first time since Jan’23.
All these indicate a broadening in breadth in the US after almost 15-18 months.
Flows into US Midcap fund expand to $4.7 billion, largest since Dec’21.
Smallcap flows of $4.5 billion are 2nd largest since Jun’22.
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