New Delhi, May 23 -- The AI and commodity-led trades that drove emerging market flows since April 2025 are showing early signs of exhaustion, while India's pace of outflows has moderated as the global rotation slows, according to a research report by Elara Capital.

Macro concerns continue to weigh on EMs, with a sixth consecutive week of outflows. Another USD 8 billion was redeemed this week, following a large outflow of USD 24.4 billion last week. The bulk of the pressure continues to originate from China-dedicated domestic funds, which have seen redemptions of around USD 79 billion since April 2026.

Global Emerging Market funds also recorded their third week of outflows at USD 738 million, after a USD 2.6 billion outflow last week. El...