India’s equity markets have emerged as the best-performing among its global peers on a year-on-year (YoY) and year-to-date (YTD) basis on the back of robust retail and institutional participation and better earnings prospects.
India's benchmark index Nifty is up 45% in the past 12 months and 19% on a YTD basis, as per a report in Economic Times.
Indian benchmarks have outperformed developed markets gauge MSCI World Index by 15% and 29% respectively in the past 12 months and YTD respectively.
The return correlation between India and global equities has declined to 61% from over 80% a few months ago. The market capitalisation of the Indian market has increased by a whopping $1 trillion in the past 12 months which now stands at $3.2 trillion. This means Indian stocks are also the most expensive in the world with a valuation of 23 times FY22 expected earnings.
While the current fiscal year's anticipated profits growth has been lowered by 2.7 percent, the FY23 consensus has been raised by 2.1 percent due to a faster rate of economic recovery.