India emerges as top Asian market choice for fund managers

India has replaced Japan as fund managers' top Asian stock market pick, as the South Asian nation is likely to benefit from supply chain shifts amid global trade tensions, according to BofA Securities' latest monthly survey.

In the fund manager survey, 42% said they are overweight on India, followed by 39% for Japan, and 6% for China. Thailand fared the worst. A total of 109 panelists with $234 billion of assets responded to the survey's regional questions.

"India emerges as the most favoured market, perceived as a likely beneficiary of the supply chain re-alignments following the effects of tariffs," strategists including Ritesh Samadhiya wrote in a May 13 note. "In India, infrastructure and consumption continue to be the primary themes that investors are keenly monitoring."

The findings support recent market trends in India, where stocks have rebounded since President Donald Trump's chaotic tariff rollout on April 2. The tariff-driven volatility in global markets has driven investors to deem India as a relative haven given its heavier dependence on domestic consumption over exports.

The Nifty 50 Index, has outperformed many of their Asian peers.