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India’s July Equity-Fund Inflows Slow as Small- and Mid-Caps Stay Hot

2026-08-11·newswire-us-stock-082002
India’s July Equity-Fund Inflows Slow as Small- and Mid-Caps Stay Hot.

Despite global headwinds, including a surge in oil prices, investors continued to favor small- and mid-cap products, while inflows into Indian equity funds slowed in July. Data from the Association of Mutual Funds in India showed net inflows of 247 billion rupees ($2.6 billion) into equity funds in July, down from 289.7 billion rupees in June.

The continued inflows coincided with a broad recovery in Indian stocks last month. The benchmark Nifty rose 2.2% in July, helped by a sharp rebound in the software-export sector, which had previously been under pressure, and heavy foreign inflows as investors sold shares in neighboring markets including South Korea.

Among actively managed products, small-cap funds attracted the most money, with inflows of 77.7 billion rupees, while mid-cap funds drew 61.9 billion rupees. The Nifty Smallcap 100 and Nifty Midcap 100 indexes rose for a fifth consecutive month in July, reaching record highs. The broader Nifty 50 remained about 6% below its record high.

Investors put 319.6 billion rupees into systematic investment plans in July, broadly unchanged from June. Steady domestic buying through these plans helped cushion the Indian stock market during periods of foreign selling.

#Stocks #Oil

Full text

India’s July Equity-Fund Inflows Slow as Small- and Mid-Caps Stay Hot

Despite global headwinds, including a surge in oil prices, investors continued to favor small- and mid-cap products, while inflows into Indian equity funds slowed in July. Data from the Association of Mutual Funds in India showed net inflows of 247 billion rupees ($2.6 billion) into equity funds in July, down from 289.7 billion rupees in June. The continued inflows coincided with a broad recovery in Indian stocks last month. The benchmark Nifty rose 2.2% in July, helped by a sharp rebound in the software-export sector, which had previously been under pressure, and heavy foreign inflows as investors sold shares in neighboring markets including South Korea. Among actively managed products, small-cap funds attracted the most money, with inflows of 77.7 billion rupees, while mid-cap funds drew 61.9 billion rupees. The Nifty Smallcap 100 and Nifty Midcap 100 indexes rose for a fifth consecutive month in July, reaching record highs. The broader Nifty 50 remained about 6% below its record high. Investors put 319.6 billion rupees into systematic investment plans in July, broadly unchanged from June. Steady domestic buying through these plans helped cushion the Indian stock market during periods of foreign selling.

Despite global headwinds, including a surge in oil prices, investors continued to favor small- and mid-cap products, while inflows into Indian equity funds slowed in July.

Data from the Association of Mutual Funds in India showed net inflows of 247 billion rupees ($2.6 billion) into equity funds in July, down from 289.7 billion rupees in June.

The continued inflows coincided with a broad recovery in Indian stocks last month. The benchmark Nifty rose 2.2% in July, helped by a sharp rebound in the software-export sector, which had previously been under pressure, and heavy foreign inflows as investors sold shares in neighboring markets including South Korea.

Among actively managed products, small-cap funds attracted the most money, with inflows of 77.7 billion rupees, while mid-cap funds drew 61.9 billion rupees.

The Nifty Smallcap 100 and Nifty Midcap 100 indexes rose for a fifth consecutive month in July, reaching record highs. The broader Nifty 50 remained about 6% below its record high.

Investors put 319.6 billion rupees into systematic investment plans in July, broadly unchanged from June. Steady domestic buying through these plans helped cushion the Indian stock market during periods of foreign selling.

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