India ranked second-least favoured in Asia Pacific, says BofA survey

India has been ranked as the second-least favoured market in the Asia Pacific region, according to the latest fund manager survey by BofA Global Research. The survey reveals that allocations to Indian equities have dropped to their lowest level in two years.

 

“Allocations to China rebounded after a sharp decline last month, while support for Indian equities, once a market favourite, continues to dwindle, reaching a two-year low,” the brokerage noted.

 

Japan remains the clear favourite in the region, followed by Taiwan. India and Thailand are placed at the bottom. Allocations to China rebounded after plummeting to near-survey lows last month.

 

Fund managers are overweight on Japan, Taiwan, China, and Singapore, while the biggest underweights are in Thailand, followed by India and Australia.

 

The survey, conducted between February 7 and 13, included 205 panellists managing $482 billion in assets. The BofA survey indicated a notable improvement in sentiment towards China.

 

“While investors remain cautious about China’s economy, they are increasingly embracing risks, particularly in the AI and semiconductor sectors, which have reached a survey high. A third of participants are seeking to build China exposure on incremental signs of easing, with fewer investors looking to cut risks on market bounces,” BofA noted.