Even after foreign institutional investors (FIIs) have pulled out billions of dollars from the Indian stock market since September 2024 to record the worst sell-off ever, global brokerage firm Jefferies has warned that their interaction with emerging market funds show that India remains a consensus underweight and is unlikely to change in a hurry.
The brokerage's analysis of 70 large EM funds with a combined assets under management of approximately $320 billion as of March 2026 shows that 61% of investors are underweight India, with positioning at 0.4 percentage points underweight compared to their MSCI EM benchmark.
