$320 billion danger: Jefferies warns 70 large EM funds are underweight India (opens original article in a new tab)

Jefferies reports that 70 large emerging market funds with $320 billion in assets are underweight India, with 61% of investors holding a 0.4 percentage point underweight position compared to the MSCI EM benchmark, citing concerns over relative valuation and earnings growth. The report suggests a shift towards hard assets like power utilities, hospitals, and real estate, as India's stock market remains a consensus underweight for foreign institutional investors.

• Jefferies warns 70 large EM funds with $320 billion in assets are 61% underweight India
• India's MSCI India index trades at 19.8x P/E, 70% premium to EM peers despite lower EPS growth
• Jefferies recommends shifting to hard assets like power, hospitals, airports, and real estate