While some investors have reduced India weight, most investors believe in sharp 2HFY16 earnings recovery and focus on the long-term structural positives, retaining their overweight.
Indian equities had lost some lure in the first half of 2015 when Chinese stocks surged and global investors feared that reforms in India could take longer. Many offshore fund managers pared their weightages on Indian stocks. But the tide may have turned a little in July with India being the only large emerging market (EM) in Asia to have posted a positive return in dollar terms; also, it’s the only market in Asia where foreign portfolio investors (FPIs) are net buyers. Details