HSBC says EM funds underweight India and $25B inflow potential
HSBC says more than 80% of global emerging-market funds are underweight on Indian stocks, a huge jump from fewer than 20% 10 years ago.
If these funds shift closer to average levels, India could attract around $25 billion in new investments.
Since May, global investors have cut back on Taiwan and Korea but slightly boosted their holdings in India and mainland China.
India attracts net inflows since mid-June
Unlike most Asian markets, India has attracted net foreign investment since mid-June.
Financials, consumer stocks, and healthcare are the top picks for investors here.
Fund managers have recently increased their stakes in companies like Adani Ports and Infosys, while reducing positions in Bharti Airtel and Kotak Mahindra Bank.
HSBC notes even a partial change in this underweight trend could bring a big wave of capital into India's markets.