India’s equity mutual fund inflows have sustained a nearly five-year record streak, increasingly driven by systematic investment plans (SIPs) amid recent market volatility that has dampened lumpsum contributions.
In April alone, actively managed equity funds recorded net inflows of ₹242.7 billion ($2.8 billion). However, this was outpaced by ₹266.3 billion coming in through monthly SIPs for the second consecutive month, according to data from the Association of Mutual Funds in India (AMFI).
SIPs—where investors contribute a fixed amount monthly, similar to dollar-cost averaging in the U.S.—have become a critical source of support for domestic markets. With monthly flows consistently exceeding $3 billion, they’ve helped cushion Indian equities from the impact of foreign investor outflows.
As of 10:02 a.m. Mumbai time, the NSE Nifty 50 Index was down 0.9% at 24,702.85, while the BSE SENSEX declined 1.1% to 81,547.91. Indian equities lagged behind their regional counterparts, with the MSCI Asia Pacific Index posting a 0.5% gain.
Technology shares retreated after Jefferies cautioned that the sector’s current valuations and fiscal 2026 revenue guidance imply limited upside potential. The Nifty IT Index dropped as much as 1.6%.
Meanwhile, strategists at BofA Securities noted that foreign inflows into Indian equities may be constrained following the recent U.S.-China trade agreement, which is expected to strengthen the U.S. dollar and redirect investor interest toward Chinese markets.
HDFC Bank was the largest drag on the Nifty 50, falling 1.2%. Of the 50 constituents, 13 advanced while 37 declined.
This follows a rally on Monday.