According to the report a global fund manager survey in November revealed that investors were 11 per cent underweight on Indian stocks.

"While BofA-ML did not give any reason for the sudden investor aversion to Indian stocks, analysts said premium valuations to most other emerging markets, following the market rally this year, and no improvement in economic parameters could have led to the aversion," the Business Standard report added.

Indian equities closed at a two-month low on Friday as worries over the fiscal cliff and concerns in the eurozone region weighed on sentiments.

Domestically, the IIP data revealed that manufacturing output slumped, while inflation continued to remain sticky.

GoodReturns.in