India has emerged as Asia’s most favored stock market among global fund managers, edging out Japan in Bank of America Securities’ latest survey. With 42% of respondents overweight on India—compared to 39% for Japan and just 6% for China—the South Asian giant is gaining momentum as a beneficiary of global supply chain shifts and rising domestic demand.
“India emerges as the most favored market,” noted BofA strategists, citing the country’s insulation from export volatility and a focus on infrastructure and consumption.
The shift reflects broader trends. Since Donald Trump’s April 2 tariff move rattled global markets, India’s Nifty 50 has held strong, outperforming most Asian peers. A temporary drag came from a conflict with Pakistan, but a ceasefire on May 10 helped restore investor confidence, boosting markets.
First-quarter earnings have also bolstered optimism. Bernstein strategist Venugopal Garre sees Indian stocks climbing another 7.6% this year, backed by stronger liquidity, tax relief, and rural demand.
India isn’t just weathering global headwinds—it’s capitalizing on them.
