Foreign outflows from Indian markets slow to $702 million in May
Money moving out of Indian markets is finally easing up after months of heavy withdrawals.
Thanks to a global shift toward AI-focused and commodity-rich economies, India had been a big source of funds leaving for other Asian markets since April 2025.
Now, the pace is slowing: foreign investors pulled out $702 million in May 2026, much less than $1.5 billion in April or $3.5 billion in March.
China-focused funds lost $79B since April
After nearly $6 billion left India over 11 weeks, things have steadied a bit, though some long-term investors are still selling.
Other emerging markets are feeling it too: there have been six straight weeks of outflows, with China-focused funds seeing the biggest hit ($79 billion gone since April).
South Korea and Brazil also saw major exits recently.
Even though passive ETFs helped soften the blow a little, Elara says investor mood is still cautious as the global excitement around AI and commodities cools off.