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Bloomberg
Flows into Indian equity mutual funds hit a five-month high in March, induced by the rally that recently lifted the $2.2 trillion stock market to a record.
Stock funds took in about $1.7 billion, the highest since October, and more than double over the previous month, data from the Association of Mutual Funds in India, or AMFI, show.
Indian equities posted their best month in three years in March as foreign investors plowed more than $6 billion — the most since September 2010 — on the prospect of Prime Minister Narendra Modi winning a second term in elections starting this week and as a dovish shift by global central banks revived demand for riskier assets.
“Volatility has come down a little and markets have shown a bit of an uptrend, all of which rubbed off on mutual-fund flows,†N. S. Venkatesh, chief executive officer at AMFI, said in a conference call. “The sentiment is positive.â€
Robust liquidity from domestic institutional investors have helped buffer the market against outflows sparked by global shocks in recent years.