Equity investors in Asia Pacific region (excluding Japan) and Global Emerging Markets (GEM) have raised their preferences for India in March over February, according to the latest BofA Merrill Lynch survey of Fund Managers. Interestingly, the BSE Sensex has gained 6.5 per cent in March so far.

While emerging market investors have increased their country bet on Russia — the survey shows that the extent of bearishness for India has reduced in March.

In the February survey, around 60 per cent of the emerging market investors were bearish on India.

But in March, less than 30 per cent of the emerging market investors say they are bearish on India.

While in the February survey, around 10 per cent of the Apac investors were bearish — the March survey shows that now 5 per cent of Apac investors are actually bullish on India.

“Investors’ concerns ab-out Greece are easing but European country risk remains a key constraint to optimism over economic recovery,” said Gary Baker, head of European Equities strategy at BofA Merrill Lynch research. “Investors are willing to embrace corporate risk, via equities, than sovereign risk,” said Michael Hartnett, chief Global Equities strategist at BofA Merrill Lynch research.