India has moved up to a "mild overweight" rating in Bank of America's latest Asia Fund Manager Survey, signaling renewed interest from global investors.
When fund managers label a market as "overweight," they expect it to perform better than the regional average. A "mild" overweight suggests moderate optimism – not a full‑blown boom, but a clear positive tilt.
Several factors are helping India stand out:
In the December poll of 238 fund managers (covering about $550 billion in assets), about 10 % are now net overweight on India, up from none in November. This makes India the third‑most‑preferred Asian market after Japan and Taiwan.
Japan remains the top pick, driven by expectations of supportive policies and strong performance in banks and semiconductor firms that benefit from the AI wave. Short‑term market dips are seen as healthy corrections.
China’s rating fell to "underweight" as growth slows and valuations become less attractive. Investors are waiting for clearer policy support before adding more exposure.
Across Asia, fund managers stay optimistic but have lowered their return expectations. Corporate profits are rebounding, yet high valuations keep expectations modest.
If you’re looking for a market that offers diversification away from AI‑heavy stocks, India’s mild overweight rating suggests it could be a worthwhile addition to a balanced portfolio.
Remember, this is just an overview, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.
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