Elara Securities in a fresh note said after nearly three years of subdued activity, long-term flow momentum into commodity equity funds has made a decisive comeback. The brokerage said similar sharp reversals were observed in January 2009, October 2015, and October 2019, which were followed by strong outperformance in Indian metal stocks. The only notable exception was during April 2012–June 2014, when global commodity flows revived but Indian metals failed to keep pace. Advertisement

"Our weekly GLT report has been consistently flagging this revival over the past few months, and the current upcycle marks the most powerful recovery in commodity flows in the last five years, since 2020," it said.

Elara said the physical to equity rotation in commodities has re-emerged after five years.

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