Global funds cut Indian equity allocation to zero as sector loses favor
Reed Capital Partners completely exited its Indian portfolio, joining other global managers who are reducing exposure amid skepticism about the lack of an AI investment theme.
Global investors are exiting Indian equities in droves. Reed Capital Partners fully closed out its Indian stock holdings roughly a month ago, marking the end of that specific strategy for chief investment officer Gerald Gan. Gan stated the India growth story was withering away compared to opportunities elsewhere. Similar actions occurred at Janus Henderson Investors and Vantage Point Asset Management. These managers have reduced their India exposure to zero in the past year. Foreign ownership of National Stock Exchange of India Ltd. companies has fallen to a 17-year low. A recent Bank of America survey places India as the least-favored market in Asia among global funds.
