India becomes the least-favoured Asian stock market in BofA survey - here's why
A Bank of America survey has identified India as the least-favored stock market in Asia, citing a lack of AI exposure and concerns over economic growth. Despite this, India has seen significant foreign capital inflows, suggesting a disconnect between investor sentiment and market fundamentals.
Why it matters
The survey reflects growing caution among global fund managers regarding Indian equity valuations and the country's position in the global tech-driven market.
India’s stock market, among the worst performing this year, has now replaced Indonesia to become the ‘least-favoured’ stock market in India, as per a fund managers’ survey by Bank of America Corp. This signals growing investor caution for the Indian stock market.The survey received responses from 98 fund managers overseeing a combined $272 billion in assets, with the responses collected between August 7 and August 13.Investor sentiment towards Indonesia, meanwhile, has improved. The share of fund managers who were net underweight on the country fell to 27% from 32% in July. Taiwan and Japan continued to rank as investors’ preferred markets in the region.Why fund managers are underweight on IndiaAccording to a Bloomberg report, the survey identified the absence of clear exposure to artificial intelligence as the biggest concern for Indian equities, followed by weak economic growth.As many as 32% of respondents were net underweight on India.
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