Sensex, Nifty rally helps India beat US, UK, China in March stock returns; best among emerging markets

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Published: April 5, 2019 3:53:05 PM

Thanks to the recent Sensex, Nifty rally India has outperformed major global economies including the US, UK and China in terms of stock returns in March, according to a report.

stock market, share market, stock market investment, Sensex, Nifty, large caps, small caps, NSE Small cap Index“Over the last 12 months, MSCI India (+12%) has outperformed MSCI EM (-10%),” noted the report.

Thanks to the recent Sensex, Nifty rally India has outperformed major global economies including the US, UK and China in terms of stock returns in March, according to a report. Notably, in March the Indian benchmark index gained 8%, while China returned about 5%. This was followed by the UK at 3% and Taiwan returning about 2%.  Apart from these economies, only the US (+2%) and MSCI EM (+1%) were the key global markets to close higher in local currency terms, Motilal Oswal noted in a recent report.

Notably, economies including Korea (-2%) and Japan (-1%) have given negative returns in the month. “Over the last 12 months, MSCI India (+12%) has outperformed MSCI EM (-10%),” noted the report. Notably, over the last five years, MSCI India has outperformed MSCI EM by a whopping 168%. Further, MSCI India’s P/E is at a premium of 106% to MSCI EM’s P/E, above its historical average premium of 47%.

Also read: How shares held by Pakistan, China’s people helped Modi govt raise Rs 1,150 crore

Interestingly, the headline indices started off the year on a stellar note, clocking fresh record highs. The Sensex regained surged past the 39,000-mark for the first time ever earlier this, and went on to hit 39,270.14, its highest ever on 3rd April 2019. The Nifty zoomed to a fresh record high of 11,761 on the same day.

According to Sanjiv Bhasin of IIFL, this has been Nifty’s fastest rise in 18 months. “We have had the fastest sprint I have seen in the last one and a half years and 10,500 is 11,700! But the new highs are seeing only pessimism. I think we have at least another 500 points on the upside, 12,000 to 12,200 and aside from that, the little bit of momentum that we have lost on the midcaps should again see a resurgence,” Sanjiv Bhasin,Executive VP, Markets & Corporate Affairs, said in an interview to ET Now adding that the Nifty could gallop to 12,000 by the end of April. Further,  it could hit 13,500 by December, he told the channel.

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