Indian Economy News

India most preferred Asia-Pacific equity market: BofA Securities Fund Manager Survey (FMS) survey

Indian stock markets have emerged as the most preferred investment destination in the Asia Pacific (Asia Pac) region, according to a recent Fund Manager Survey (FMS) conducted by BofA Securities. A net 42% of fund managers chose India over Japan (39%), China (6%) and Singapore (3%). The survey attributes India’s popularity to its perceived benefit from supply chain re-alignments driven by tariffs. Japan lost its top spot while China rose third from last month’s lowest rank. Thailand remained the least preferred market. Key themes attracting investors in India continue to be infrastructure and consumption. The survey, conducted between May 2 and 8, 2025, included 208 participants managing Rs. 47,12,424 crore (US$ 522 billion) in assets under management (AUM). Of these, 174 responded to global questions with Rs. 39,09,946 crore (US$ 458 billion) AUM and 109 to regional questions with Rs. 19,97,658 crore (US$ 234 billion) AUM.
Economic revival expectations drive improved market sentiment in the Asia-Pacific region. While 58% of respondents still foresee an earnings slowdown, this is a notable improvement from 78% last month. Similarly, the proportion expecting a weaker global economy dropped to 59% from 82%, and those expecting a weaker Asian economy declined to 77% from 89%. In the Asia ex-Japan portfolio, fund managers are overweight in the telecom and software sectors while underweight in energy, materials, and consumer discretion (excluding retail/e-commerce). Optimism in the semiconductor cycle has also grown, with only 42% anticipating a slowdown, down from 59% in April. In Japan, banks and real estate are top picks, while AI/semiconductors and firms expected to announce buybacks/dividends are favoured in China.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.