India Beats China And Malaysia Among Emerging Markets

India's stock indices, having beaten peers in the pre- and post-pandemic periods, underperformed global markets over the last three months and so far in 2023. Yet, the domestic benchmark is one of the most expensive globally.

India ranks sixth by returns among emerging markets over the past three months. While Argentina, Russia, Brazil, Saudi Arabia and Taiwan outperformed India, the domestic market beat South Korea, Turkey, China and Malaysia.

India ranks 12th across emerging markets on a year-to-date price performance, lagging Argentina, Chile, China, Brazil and others. It only managed to outperform Malaysia.

India ranks fourth among top global markets. It lagged the U.S. and Japan but beat China, Korea, Germany, and the U.K. over the last three months. 

India Vs Global Markets

The Nifty 50 ranks ninth among global markets year-to-date, trailing Japan, Germany, South Korea, China, and other benchmarks. However, it managed to outperform Dow Jones (U.S.), and the U.K. and Hong Kong benchmarks.

However, the valuations reflect a different story. The Indian markets have a history of trading at a premium, and this time was no different. India is one of the most expensive markets globally.

The NSE Nifty 50 is trading at 19.86 times its estimated one-year forward earnings—making if the fourth most expensive market among global peers, and the most expensive emerging market.