NSE shares slipped 1.2% on Friday, following a week‑long outflow of ₹31.8bn from India‑focused funds, the biggest single‑week drain in more than a year.
Elara Capital’s Global Liquidity Tracker reports that India‑focused funds averaged $420m of outflows over the past four weeks. Traditional equity funds pulled $230m, while ETFs shed $190m. US‑based vehicles were the largest sellers, with Irish funds trailing. Outflows have slowed since the peak in April‑May 2026 but remain steady.
Global equity flows rebounded to $65bn last week, the highest in four weeks, with the US contributing $40bn. Emerging‑market funds flipped to positive territory, pulling in $378m after a four‑week outflow streak. South Korea and Taiwan enjoyed inflows of $1.1bn and sustained inflows, respectively, while Brazil attracted $1.8bn and $1.9bn in the past two weeks, its strongest weekly inflows since January.
Industrial‑focused funds have been draining cash for the first time since the AI boom in May 2025. The US industrial index has slipped below its 200‑day moving average, and the number of stocks trading below that level has hit a five‑month high. In contrast, technology funds pulled in $10.7bn last week, their highest in three months, indicating a selective move away from AI‑driven plays.
Analysts expect the selling pressure on Indian equities to ease as global equity flows normalize. The NSE is poised for a modest rebound if the outflow trend continues to decelerate, with upcoming domestic earnings and policy announcements likely to influence sentiment.