India’s equity fund inflows hit 23-month highs in February, according to Goldman Sachs. The data from the Association of Mutual Funds in India revealed that monthly inflows into India’s domestic equity funds reached $3.2 billion, marking a significant increase.
Goldman Sachs also noted that inflows into equity funds through systematic investment plans (SIPs) remained strong, hitting fresh highs of $2.3 billion. Additionally, foreign inflows into India totaled $2.2 billion in the week ending March 15.
Despite the positive inflow numbers, India’s Nifty 50 index experienced a slight dip of 0.3% on Monday, following a more significant drop of over 2% the previous week.
This news comes amidst a backdrop of economic activity in Asia, with China reporting better-than-expected retail and industrial numbers for the first two months of 2024. Retail sales in China rose by 5.5% and industrial production increased by 7%, surpassing analysts’ expectations. The country’s unemployment rate for cities stood at 5.3% in February.
In Japan, the Nikkei 225 index saw gains of over 2% on Monday, driven by manufacturing and health-care stocks. Financial technology company Rakuten Group was the top gainer on the index, surging by 7.38%. Other notable gainers included automaker Nissan and pharmaceutical firm Chugai Pharmaceutical.
Looking ahead, economists anticipate less transparency from Federal Reserve Chair Jerome Powell during the central bank’s policy meeting this week. EY chief economist Gregory Daco suggests that Powell may offer less clarity on potential rate cuts, but could discuss policy easing and the timing of tapering the balance sheet quantitative tightening process.
As Wall Street awaits insights on interest rate cuts, stock futures were relatively unchanged on Sunday. Dow Jones Industrial Average futures slipped slightly, while Nasdaq-100 futures ticked up and S&P 500 futures hovered near the flatline.
Overall, the financial markets in Asia and the U.S. are experiencing various movements and trends, reflecting the dynamic nature of the global economy.
