Trump Spurs India-Dedicated Fund Flows

US flows fade, India gains

- Dipti Sharma

US equity indices have been in the red for the past month as recession fears take center-stage. Add to that the US President's steep spending cuts and tariff hikes and it's no wonder investors are getting jittery, preferring to shift their stock bets to other countries.

Although the bearish sentiment among US investors eased in March from levels in January or February, they remain at decadal highs, similar to the covid period, said Garima Kapoor, economist and executive vice president at Elara Securities India.

Recession fears owing to policy uncertainties and Trump's tariffs are adding to the valuation discomfort in the US, leading to about $15 billion in outflows from US equities, while the global ex-US markets attracted an inflow of about $4 billion in March, she said.