Global funds sour on India stocks as some cut allocation to zero

When Reed Capital Partners, a multifamily office, wanted to trim its equity exposure about a month ago, it chose to entirely exit its Indian portfolio.For Gerald Gan, chief investment officer at the Singapore-based firm, it was an easy call. “There isn’t much going on for a good India story,” Gan said. “It is more the growth story that is withering away for India.”Gan’s views echo the growing skepticism toward Indian equities among a section of global money managers, who cite the absence of an artificial-intelligence investment theme and lukewarm corporate earnings as reasons to either cut their allocations or completely exit the $5.1 trillion market. As a result, foreign portfolio ownership of companies listed on the National Stock Exchange of India Ltd. has tumbled to a 17-year low.134105089The retreat marks a stark reversal for a market that was one of the world’s hottest investment destinations not long ago.