Indian stocks stole the show this year as decisive leader Narendra Modi won investors’ confidence, but will the love continue into the New Year?
Global emerging market investors’ exposure to India is well above historical levels, according to a Bank of America Merrill Lynch fund manager survey released this week. Exposure to India is now around three standard deviations above the mean relative to its history. By this measure, it’s currently the most-loved market for both emerging market and Asia-Pacific investors.
Fervent buying by overseas investors helped drive a breathtaking 32 percent year-to-date surge in India equities, leaving emerging market peers in the dust. China stocks, by comparison, have risen 15 percent, while Brazil equities gained just 3.7 percent.
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