Indian economy, equity markets outperformed China in past 3 yrs

New Delhi: China’s equity markets have lagged Indian equity by a long stretch, as per a report by DSP Mutual Fund. China’s current equity market capitalisation is double that of India, at a time when it’s GDP is 5 times that of Indian GDP.

Between 2004 and 2021, China’s economy outgrew India’s GDP at a ferocious pace, but has lost some relative momentum since. Over the past 3 years, the Indian economy and equity markets have outperformed China, the report said.

At this juncture, India’s frontline stock index the Nifty-50 Index trades at 23x trailing earnings, while the Shanghai Composite trades at 11x trailing earnings. Emerging markets vary widely in quality, with India considered high-quality and traditionally expensive, while China and South Korea are perceived as lower quality and cheaper.