Now Reading: India equities underperformed global peers 70% in two years
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India equities underperformed global peers 70% in two years
Indian equities have underperformed emerging and global markets by nearly 70% over the past two years, DSP Mutual Fund's Jay Kothari told livemint.com. He expects this gap to mean-revert, allowing India to…
Indian equities have underperformed emerging and global markets by nearly 70% over the past two years, DSP Mutual Fund's Jay Kothari told livemint.com. He expects this gap to mean-revert, allowing India to outperform again. India lacks hardware and semiconductor segments that drove 50% of global tech growth, Kothari said.
A separate WhiteOak Capital Mutual Fund study cited by livemint.com shows the Nifty 500 delivered a 7.7% annualised return over 20 years, second among emerging markets behind Taiwan. Over one year, the Nifty 500 returned negative 6.2%, second worst. The study warns against chasing short-term top performers.
Kothari urged retail investors not to be swayed by momentum or hype in the upcoming IPO rush. He said time in the market matters more than timing it, and modest 15% returns should not seem disappointing after extraordinary outliers.
Indian Opinion Analysis
Both livemint.com articles take a neutral-report stance, presenting data and expert views without slant. The first piece emphasises the 70% underperformance gap and India's missing tech segments as structural headwinds, while the second counters with 20-year data showing India ranks second among emerging markets. Together they show that short-term weakness (negative 6.2% one-year return) coexists with strong long-term compounding. Investors should weigh both: the 20-year track record supports patience, but Kothari's warning about structural tech gaps suggests India may not repeat its historical outperformance without expanding its tech base. The RBI's next policy decision on 8 April will influence foreign flows.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), livemint.com (2) (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
