India Emerges As Most Preferred Equity Market In Asia Pacific: BofA Survey

Infrastructure and consumption remain the dominant investment themes in India, according to BofA Securities' Survey. These sectors continue to attract heightened investor attention

A more constructive outlook on economic growth is contributing to improved market return expectations across the Asia Pacific region

Source : ABPLIVE AI

India has become the most favored stock market among Asia Pacific countries, according to BofA Securities' latest Fund Manager Survey (FMS). A net 42 per cent of fund managers surveyed preferred Indian equities over other regional markets, ahead of Japan at 39 per cent, China at 6 per cent, and Singapore at 3 per cent.

“India emerges as the most favored market, perceived as a likely beneficiary of the supply chain re-alignments following the effects of tariffs. Japan relinquishes the top spot, while China rises to the third spot from the lowest rank in the previous month. Thailand remains the least preferred market,” BofA Securities' survey said, according to a Business Standard report.

Infrastructure and consumption remain the dominant investment themes in India, according to BofA Securities' Survey. These sectors continue to attract heightened investor attention amid strong domestic growth prospects.

The May 2025 survey included 208 panelists managing a combined $522 billion in assets. Of these, 174 fund managers with $458 billion in assets under management (AUM) responded to the global survey, while 109 panelists overseeing $234 billion in AUM participated in the regional Asia Pacific-focused questions. The survey was conducted between May 2 and May 8, 2025.

Economic Outlook Brightens

A more constructive outlook on economic growth is contributing to improved market return expectations across the Asia Pacific region. While a net 58 per cent of fund managers still expect an earnings slowdown, this marks a sharp improvement from 78 per cent in the previous month.

Moreover, current consensus earnings estimates appear more grounded, leaving room for potential upward revisions. On a broader scale, sentiment on the global economy has also improved. A net 59 per cent of respondents now expect a weaker global economy, better than last month’s 82 per cent, the most pessimistic reading to date. Similarly, views on the Asian economy have improved, with 77 per cent forecasting weakness, down from 89 per cent previously.

Sentiment On China Improves

Investor sentiment toward China has started to turn more positive. Only 16 per cent of respondents now report seeking opportunities outside of China, down from 26 per cent last month. Notably, a record 10 per cent of fund managers say they are now fully invested in Chinese equities.