{
  "id": 6850948,
  "title": "Global funds sour on India stocks as some cut allocation to zero",
  "url": "https://urgent.news/2026/09/12/global-funds-sour-on-india-stocks-as-some-cut-allocation-to-zero",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-12T03:05:42.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/global-funds-sour-on-india-stocks-as-some-cut-allocation-to-zero/articleshow/134104559.cms"
  },
  "original_language": "en",
  "account": "Global funds are pulling their investments out of India's stock market, with some reducing their holdings to zero, according to recent reports. Gerald Gan, the chief investment officer at Reed Capital Partners, cited the lack of an artificial-intelligence investment theme and poor corporate earnings as reasons for his decision to exit India's market. This move follows a trend of skepticism among global money managers, who are abandoning India in favor of AI-focused investments in South Korea and Taiwan. Foreign portfolio ownership of Indian companies listed on the National Stock Exchange of India Ltd. has hit a 17-year low. Despite India's high economic growth rate and Prime Minister Narendra Modi's infrastructure projects, these factors no longer hold the same allure as they once did. The NSE Nifty 50 Index, which represents India's stock market, is trading at a 77% valuation premium compared to the MSCI's emerging-market benchmark, making it less attractive to foreign investors. As a result, about $25 billion in net investments has been pulled out of India this year, with many fund managers shifting their focus to tech-heavy markets in Taiwan and South Korea.",
  "summary": "Global investors are reducing Indian equity exposure due to a lack of AI investment themes. Foreign portfolio ownership has fallen to a seventeen-year low as funds exit the market. India now ranks as the least-favored market in Asia according to a recent survey. Local institutions are providing support, but foreign capital remains a concern. Investors seek more durable foreign direct investments…",
  "key_points": [
    "Global funds cutting India stock allocations to zero",
    "Lack of AI theme and poor corporate earnings cited",
    "Foreign portfolio ownership hits 17-year low"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Economic Times - Top News",
        "title": "Goldman Sachs’ India Portfolio; 10 stocks rally up to 130% in CY26",
        "url": "https://urgent.news/2026/09/12/goldman-sachs-india-portfolio-10-stocks-rally-up-to-130-in-cy26",
        "published": "2026-09-12T07:36:28.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}