** India remains a consensus underweight for foreign portfolio investors, and that is unlikely to change quickly, Jefferies says after meetings with more than 50 investors in the U.S.

** India's relative valuation versus growth remains a key concern, says brokerage

** Adds, FPIs are also waiting for greater clarity on when the AI and memory themes peak before making a meaningful shift

** Foreign investors have sold a record $30.8 billion of Indian equities so far in 2026, dragging the Nifty 50 .NSEI down 8.7% as of the last close

** Jefferies' analysis of 70 large emerging-market funds shows 61% are underweight India, a position that has likely intensified through the June quarter

** While earnings growth should improve in FY27 and FY28, Jefferies expects it to lag emerging markets due to rupee weakness, earlier oil pressures and El Nino risks to the monsoon

** Sectorally, FPIs are considering industrials and power utilities, which is now the second-largest segment in MSCI India after banks, says Jefferies

** Brokerage remains overweight on power, banks and metals