India-focused fund flows are showing early signs of stabilisation, with the country attracting $184 million in the week ending 25 July 2025 — its strongest weekly inflow since March — according to Elara Capital's latest Global Liquidity Tracker. The data suggests that foreign positioning on India has turned less negative after months of sustained outflows.

India Inflows: ETFs Lead, Active Funds Lag

Net inflows into India-focused funds remained modest at $17 million overall, as redemptions paused following a cumulative $8.6 billion in outflows since February 2025. The recovery was uneven: India-focused ETFs attracted $118 million, while active long-only funds continued to bleed, recording outflows of $101 million, according to the Elara Capital report.

Global Industrial Funds Hit First Momentum Break Since May 2025

In a notable shift, global industrial funds recorded negative rolling four-week flows for the first time since the AI trade began in May 2025. Technology funds, however, continued to attract the strongest inflows globally, reinforcing investor preference for direct AI beneficiaries over the broader AI supply chain. This divergence suggests the market is narrowing its AI-related bets rather than broadening them.

Emerging Markets See Selective Dip-Buying

With the Emerging Market (EM) Index correcting 10 per cent from its peak, investors have begun selectively buying the dip. GEM funds attracted $1.9 billion this week, following $1.8 billion the previous week, bringing the two-week total to $3.7 billion — reversing approximately 28 per cent of the $13 billion redeemed over the preceding ten weeks.

Meanwhile, US equity funds recorded another modest outflow of $6 billion, marking the third week of redemptions in the last five weeks. The report attributes this moderation to a cooling of the exceptional inflow momentum that followed the SpaceX listing.

Gold, Silver, and Consumption Funds: Mixed Signals

Gold funds recorded their largest weekly inflow since mid-April, while silver fund flows continued to stabilise after several months of heavy redemptions. On the other end of the spectrum, consumption funds have taken the biggest hit from the current AI investment cycle, suffering consistent outflows since November 2025, though the pace of redemptions has eased in recent weeks.

Taiwan and South Korea: Foreign Cooling, Domestic Buying

Foreign fund flows into Taiwan and South Korea continued to cool, but domestic investors in both markets remained aggressive buyers of the correction. Taiwan domestic funds recorded their second-largest weekly inflow at $4.8 billion, with the previous record also set immediately after the June market correction — a pattern suggesting domestic conviction in the dip-buying thesis.

For India, the latest data points to a tentative but meaningful shift in foreign sentiment, with the trajectory of AI-driven global fund rotation likely to determine whether this stabilisation holds in the weeks ahead.