India slips to Asia’s least favoured market

Country loses the top spot to Japan in a striking reversal of fortune

- BY JUSTIN VARGHESE

Just three months ago, India was the crown jewel of Asia’s stock markets. Now, it’s wearing a very different crown — that of the region’s least favoured, according to Bank of America’s (BofA) latest fund manager survey.

The August poll of 99 fund managers overseeing $183 billion in assets found 30 per cent now underweight on India — more than any other Asian market. Thailand followed with 20 per cent, and Malaysia with 10 per cent. On the flip side, Japan climbed to the top spot, with China surging into second place.

Trade war casualty

The reversal is striking. In May, India displaced Japan as investors' favourite Asian equity market, thanks to its perceived resilience during Washington's early tariff moves. But that optimism has evaporated.