In a concerning trend for the Indian growth story, foreign portfolio managers have remained underexposed to the Indian markets even as allocations to the market have risen modestly in recent months, notes Goldman Sachs.
In a latest note, led by analyst Sunil Koul, the brokerage firm has noted that over the past three months, exposure to India rose the highest across markets within global Emerging Market (EM) funds.
That said, India remains one of the most underweight positions across global EM portfolio, trailing benchmark allocations by 280 basis points.
Goldman Sachs adds that India’s allocation to the active mutual funds globally is hovering at a two-decade low.
On an aggregate basis, global funds across EM and broader global mandates are underweight on India by at least 215 bps.
