$320 billion danger: Jefferies warns 70 large EM funds are underweight India

Despite record FII outflows from Indian equities since September 2024, Jefferies said India remains a consensus underweight among emerging market investors. Its analysis of 70 EM funds managing $320 billion showed 61% remain underweight India. Concerns over rich valuations versus growth and uncertainty around the AI/DRAM cycle may delay foreign inflows, though interest is shifting to hard-asset themes.