---
title: "India’s equity mutual fund inflows rise after 2-month lull on earnings, US trade deal"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/278513790.md"
description: "In February, inflows into Indian equity mutual funds increased by 8.1% month-on-month to 259.78 billion rupees, marking the first rise in three months, driven by stabilizing earnings and a U.S. trade deal. However, systematic investment plan inflows fell to 298.45 billion rupees. Investments in gold ETFs dropped significantly. Foreign investors turned net buyers, purchasing shares worth 226.15 billion rupees, despite offloading IT stocks. The trade deal reduced tariffs on Indian goods, enhancing market access for agricultural products."
datetime: "2026-03-10T07:59:42.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/278513790.md)
  - [en](https://longbridge.com/en/news/278513790.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/278513790.md)
---

# India’s equity mutual fund inflows rise after 2-month lull on earnings, US trade deal

March 10 (Reuters) - Inflows into Indian equity mutual funds rose for the first time in three months ‌in February, according to industry data on Tuesday, ‌as stabilising earnings growth and a trade deal with the U.S. helped lift ​sentiment.

\* Inflows rose 8.1% month-on-month to 259.78 billion rupees($2.82 billion), data from the Association of Mutual Funds inIndia showed. \* However, fewer trading sessions during the month resultedin inflows through systematic ‌investment plans dropping ⁠to298.45 billion rupees from 310.02 billion rupees in January. \* Investments in gold exchange-traded funds slid sharply ⁠to52.55 billion rupees in February from 240.4 billion rupees inJanuary, when they surpassed equity mutual fund inflows for thefirst time. \* ​Last month, ​the benchmark BSE Sensex ​index dropped 1.2%,while the Nifty ‌50 index dropped 0.6%. \* Broader small-caps rose 0.3%, while mid-caps rose 1.2%. \* Foreign investors turned net buyers in February afterthree months of outflows, purchasing shares worth 226.15 billionrupees. \* While offloading 169.49 billion rupees of IT stocks lastmonth due to ‌fears of an AI-led disruption, ​foreign investorsinvested in sectors such as ​capital goods, financials, metals,and ​energy. \* Improving earnings, despite a one-time hit ‌from new labourcodes, supported the buying ​last month. \* ​India struck a trade deal with the U.S. in early February,which brought down the tariff on Indian goods ​to 18% from ‌50%earlier, granting Washington limited access to its market foragricultural ​products

($1 = 91.9700 Indian rupees)

(Reporting by Nandan Mandayam in ​Bengaluru; Editing by Harikrishnan Nair)

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