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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid escalating regional conflict and its direct impact on emerging markets, Indian equity mutual fund inflows have slumped to their lowest level this year. According to analyst reports, the fallout from the war in Iran has triggered extreme caution among both retail and institutional investors, leading to a significant slowdown in liquidity injection. Simultaneously, gold ETFs in India witnessed record outflows as investors liquidated positions to meet urgent liquidity needs driven by geopolitical uncertainty.
This decline occurs as domestic economic data shows mixed signals; India's current account recorded a surplus of $7.1 billion per market data on June 8, 2026, defying forecasts of a $15 billion deficit. Despite this improvement in the external balance, fears of supply chain disruptions and rising energy costs due to the Iran conflict have overshadowed positive macro data, prompting a retreat from both risk assets and traditional hedges like gold.
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Sign InLooking ahead, traders are monitoring NIFTY index levels closely amid sharp volatility fueled by military developments. According to the economic calendar, global markets are awaiting speeches from central bank officials, including ECB's Lagarde, for cues on global financial stability. Market participants will focus on upcoming weekly fund flow data to determine if these record outflows represent a peak in pessimism or the start of a prolonged bearish trend.