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India becomes Asia’s least-preferred market in Bank of America survey
Bank of America’s survey found 32% of fund managers are net underweight on India, citing limited AI exposure and concerns about weak growth.
India’s stock market has fallen out of favor with fund managers, with Bank of America survey results showing it has become Asia’s least-preferred market, replacing Indonesia.
LiveMint Markets reports that sentiment has weakened in 2026 despite a strong start, as overseas investors keep selling, crude oil prices stay elevated, the rupee has hit record lows, and broader global uncertainty has pushed a risk-off mood.
The outlet also links the deterioration to stretched valuations and geopolitical stress, including tensions tied to Venezuela and the US war with Iran, as well as heightened global bond yields.
According to the survey cited by LiveMint Markets, the lack of clear AI exposure is the key concern for Indian equities, and weak domestic growth has emerged as another major risk, with 32% of respondents net underweight on India.
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