After a year of heavy foreign selling, Amundi — Europe’s largest asset manager with $2.67 trillion AUM — expects international investors to return to Indian equities as pressures ease and growth normalizes.
Foreign investors have offloaded $16.4B in Indian stocks so far in 2025, the second-largest outflow on record, even as domestic institutions stepped in with $77B in buying.
Despite India’s Nifty 50 +10.8% YTD, it has lagged global peers — far behind the +24% MSCI Asia-Pacific ex-Japan index and +16% Shanghai Composite.
Why Amundi Sees a Turning Point
- Valuations near neutral → more attractive entry points
- Domestic demand remains strong
- Nominal GDP growth expected to normalize after a soft April–June period
- Corporate earnings improving
- India acts as a hedge against global volatility thanks to low export dependence
- High U.S. tariffs → “not really a concern”
Amundi recommends overweight exposure to Indian equities, calling India one of its top EM picks for 2026, while staying neutral on China, Japan, and the U.S.
India’s structural growth story — domestic-driven demand, policy support, and middle-power resilience — continues to pull long-term capital back into the market.