BUZZ-FPIs' India allocation at 2-yr low on growth, earnings and trade woes, BofA says

Reuters
02-19
BUZZ-FPIs' India allocation at 2-yr low on growth, earnings and trade woes, BofA says

** FPIs' funds allocation to India at two-year low, according to a survey of fund managers by BofA Securities

** Due to weak earnings, slowing domestic growth and global trade certainty, global fund managers are 19% net underweight on Indian markets, second lowest in APAC after Thailand

** FPIs have sold shares worth $12.3 billion so far in 2025, inching closer to $16.5 billion selloff seen in all of 2022, which was the highest foreign outflows from India in at least a decade

** India's Nifty 50 .NSEI down 13% from record highs in late September and trading 3% lower in 2025

** Broader smallcaps .NIFSMCP100 and mid-caps .NIFMDCP100 down 21.4% and 17.3% from record highs in December and September, respectively

** Stronger valuations in markets such as China and Korea could also keep foreign investors away from India, says Sat Duhra, portfolio manager on Asia ex-Japan equity team at Janus Henderson Investors

Asia Pacific market sentiment of fund managers https://reut.rs/4gNdw4x

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))

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