India faces capital cold snap in largest fund retreat since January

EMs synchronised in capital flight as tariff storm clouds darken

India saw steep withdrawals from global funds last week, totalling $632 million — the largest since January 15. Nearly two-thirds of this, or $418 million, came from India-focused funds, marking the biggest outflows since February 19, according to Elara Capital.

   

This is the second straight week of heavy redemptions, interrupting a previous streak of steady inflows. Over the past five weeks, India-focused active funds have recorded cumulative withdrawals of $362 million.

   

Exchange-traded funds (ETFs) tracking Indian equities also faced outflows of $456 million over the past two weeks.

   

The biggest drains came from iShares