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Informist, Friday, Jun. 12, 2026

MUMBAI – The recent redemptions from global emerging market funds suggest the allocation towards artificial intelligence infrastructure and commodities is losing momentum for the first time in over a year, said Sunil Jain, vice-president at Elara Securities, said in a report Friday. Foreign investors have pulled out INR 10 billion from markets in Taiwan and South Korea, major beneficiaries of AI trade, in six weeks, the report said.

"Foreign investors continue to pull money from Taiwan, S Korea, Brazil and Mexico...," the report said. "Collectively, these trends suggest that the broad, top-down allocation into the AI infrastructure and commodity ecosystem is losing momentum for the first time in over a year."

At the same time, technology-focused funds in the US continue to see interest and saw inflows of $10 billion this week. "This indicates that while investors are reducing exposure to the broader AI supply-chain and infrastructure trade, conviction in direct AI innovators and beneficiaries remains intact," the report said.

Outflows from India continued this week, with India's relative performance against global emerging markets funds having fallen to record lows on both one- and three-year horizons. "Historically, such extremes have tended to coincide with major turning points in relative performance," the report said.  End

Reported by Anshul Choudhary

Edited by Deepshikha Bhardwaj

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