Equity Flows Strong Despite Flat Nifty; Gold Sees Surge in Investor Interest

BY: Anand Vardarajan, Chief Business Officer, Tata Asset Management

Equity numbers continue to remain fairly strong despite the Nifty being flat over the past year. It is heartening to note that primary market activity was robust in September with several IPOs, while equity flows also remained strong in the secondary markets.

Flexicap funds continued to witness strong inflows, followed by mid- and small-cap funds. Notably, sectoral and thematic funds have been losing steam lately.

Precious metals, particularly gold and silver, have performed very well in the last couple of months. Flows into gold nearly quadrupled in September, rising from about INR 2,000 crore in August to around Rs 8,300 crore. This surge was largely driven by strong performance as well as investors seeking safety and diversification. In the same vein, multi-asset funds saw strong flows within the hybrid category.

Debt flows, however, turned negative, primarily due to quarter-end liquidity requirements. Festive season spending may also have contributed to the weak/negative flows in this segment.