India stands out in equity markets: Report
Over three years, the Indian Index delivered a healthy 12.7% annualised return, as compared to broader emerging market group’s -4 per cent and China’s -17 per cent return over the same period
Johannesburg: South African investment platform Satrix has lauded the Indian equity market for exceptional growth, while other emerging economies have been struggling. “It has been four stellar years of growth for the Indian equity market despite a global pandemic and various regional instabilities plaguing other emerging economies during this time,” Satrix said in a statement on Friday.
One of the company’s products is the Satrix MSCI India Exchange Traded Fund (ETF), which holds 131 large and mid-cap Indian companies representing close to 85 per cent of the Indian stock market. Satrix said this gives investors diversified access to one of the world’s fastest-growing emerging market economies.
The ten largest companies in which the ETF is invested are in the Financial and Technology sectors -- Reliance Industries, ICICI Bank, Infosys, HDFC Bank, Tata Consultancy Services, Axis Bank, Bharti Airtel, and Bajaj Finance. Others in the top ten are industrial giant Larsen and Toubro and consumer goods manufacturer Hindustan Unilever.
“Year to date, the MSCI India Index delivered a return of 11.8 per cent to the end of November, compared to a 5.7 per cent return from the MSCI Emerging Markets (EM) group and -9 per cent for the other Asian giant, China (all in USD total returns),” Satrix said.
The MSCI India Index is designed to measure the performance of the large and mid-cap segments of the Indian market. With 122 constituents, the index covers approximately 85 per cent of the Indian equity universe.
Over three years, the Indian Index delivered a healthy 12.7 per cent annualised return, compared to the broader emerging market group’s -4 per cent and China’s -17 per cent return over the same period. “China especially, and emerging market indices more broadly, have struggled through severe lockdown restrictions and a slow post-Covid recovery. In this grouping, India stands out – delivering returns more in line with developed market indices, buoyed by a strong recovery in tech companies,” Satrix said, adding that $1 invested in the MSCI India Index four years ago would have returned close to 50 per cent by now.
