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Sensex and Nifty are touching new records in India, but in the last one year, India has been among the weakest performing markets in the world. This data is completely contrary to the opinion of Helios Capital founder Sameer Arora in which he had said that India has performed better than other markets.
New Delhi. Sensex and Nifty may have reached new record highs last week, but if we look deeper into the global equity race, a shocking picture emerges. In the last one year, India has been counted among the weakest performing big markets in the world. Not only this, indices of many countries have given many times higher returns to India and that is why foreign investors have withdrawn money from India and gone to markets with higher returns.
These figures are in sharp contrast to the opinion of Helios Capital founder Samir Arora in which he had recently said that India is performing better than other markets and there is reason to be excited for Indian investors. But hard data tells a different story.
India left behind in the global race
According to an article in the Indian Express, if seen year after year, the Sensex has shown a rise of only 8.42 percent. This surge is considered quite weak despite India’s strong macro story and large domestic flows. In comparison, South Korea’s index jumped 60 percent. Mexico climbed 62.29 percent. Japan gave 31.53 percent return and Hong Kong rose 33.13 percent. Spain rose 40.63 percent. This data shows that investors around the world are choosing value markets and high return momentum and India has slipped in this race. This is the reason why FPI withdrew money from India and deployed it in South Korea, Mexico, Japan and Hong Kong.
China also defeated India
The most interesting thing is that China, which has been struggling with growth concerns and structural issues for the last one year, also gave a return of 16.90 percent. This return is better than India. Quoting the CEO of a global investment firm, Express has written that FPIs were not seeing any reason to keep India overweight because other markets were earning many times more and faster.
This picture is contrary to Sameer Arora’s opinion
Growth story strong but returns weak
The Indian market remains dominant due to domestic investors, huge amount of money has also been coming in from mutual funds. The macro story is stable, growth is solid, there is political stability. But market valuations are considered stretched in many places, due to which foreign investors are not finding India that attractive. Where there was an opportunity for fast returns in the global markets, India lagged behind in the competition. The result is that India’s record highs are shining only on the surface, but if we look deeper, India appears to be a weak performer in global comparison.
