Only 10% of fund managers are optimistic in India: BOFA survey shows investors shift
According to the latest Bank of America (BOFA) fund manager survey, India’s pecking order in Asia-Pacific investment destinations fell to fourth, indicating a sharp decline in appetite for Indian stocks worldwide. These findings are in the domestic market, especially when the beautiful indexes are trapped in the narrow consolidation range for nearly two months, reflecting uncertainty and lack of powerful triggers.
India’s weight is falling in global portfolio
According to the BOFA report, only 10% of fund managers are currently overweight in India, a sharp decline compared to other regional markets. By comparison, 32% of Taiwan prefer Japan, followed by 19% of Taiwan and 16% of South Korea due to their outstanding performance in key growth sectors and emerging policies.
The report stressed: “Taiwan and South Korea both benefited from the revival of semiconductor cycle.” South Korea also adopted reform-friendly policies under its new leadership, attracting people’s movement.
Semiconductor demand steals programs
The shift in investor sentiment took place at a global rally of semiconductor-related stocks. Taiwan and South Korea are deeply involved in chip supply chains and they are reaping the rewards of this cycle. Meanwhile, Japan continues to attract auxiliary export-driven distributions driven by structural reforms, strong corporate governance, and the yen weakened auxiliary exports.
Indian IT sector under pressure
One of the most notable gains from the survey was a sharp decline in sentiment towards India’s IT services sector, one of the most attractive sectors in the country to foreign investors. BOFA said its Indian IT services metrics have fallen to 20-month lows, highlighting concerns about growth, global demand and profit pressures.
The merger model of Dalar Street
Dr VK VK Vijayakumar, chief investment strategist at Geojit Financial Services, stressed that the Indian market is in a waiting stage. “There is no trigger in the market that is about to be stuck in the integration range for two months,” he said.
Vijayakumar added that although he noted that positive progress such as the India-U.S. temporary trade agreement has been priced, Vijayakumar added: “A positive and surprising factor that can trigger a rally is below 20% tariff rates, such as 15%, and the market has not yet been discounted.”
Regarding the industry’s perspective, he emphasized The results are still insufficientbut expressed optimism around the bank. He added: “The leading private banks are now in defensive mode. The market discounted NIM compression in the results in Q1. But this will reverse from Q3 and can now make them a reality.”
What should investors watch
Bank of America’s findings clearly show that Dalar Street is no longer the default investment option in the Asia-Pacific region. To regain the top destination, India will need fresh catalysts, whether from reforms, company revenue or favorable global tips.
Currently, investors are inclined toward economies riding the semiconductor wave or implementing clear economic reforms. Unless the Indian market finds new drivers, traffic may continue to shift to more agile Asian peers.
