China’s stocks rally dims India’s appeal Chinese equities are the rage with money managers, driven by DeepSeek’s AI breakthrough, which is driving a rotation of funds away from emerging markets, including India. While hedge funds are piling into Chinese shares, Indian equities have faced net selling by global investors every single day since late December. According to Nomura, renewed optimism about China makes Indian equities less compelling. Worries over a weak rupee, slowing growth, banking sector liquidity, and the risk of Trump’s tariffs are keeping investors wary. Unless one or more of these issues see an improvement, foreign flows into India may stay muted. More takers for commodity funds amid selloff Despite the broader market meltdown, theme-based mutual funds are still seeing demand. Commodities, often overlooked, have fared better in a falling market, with a Nifty gauge tracking these stocks falling about 4% this year, in line with the main benchmark gauges. Kotak Mutual Fund is tapping into this trend with a fund focused on commodity-driven stocks, particularly high-beta shares that could outperform when the market mood improves. China’s fiscal stimulus and India’s potential to become the third-biggest economy are two key drivers for the commodity sector, according to the money manager. A resurgent dollar is the one big factor weighing on Indian stocks right now. With the greenback holding steady against global currencies, managing foreign currency exposures and treasury management has become crucial for global companies. The word ‘hedging’ has been popping up frequently in earnings calls of companies in the Nifty 200. Among those discussing their hedging strategies are aluminum maker Hindalco Industries, Power Finance Corp., Patanjali Foods, and Titan Ltd. @Bloomberg