Indian stocks have fared the best among the BRIC markets in the first six months of this year, amid weak global economic climate hurting investor returns worldwide.
According to an analysis of MSCI Barra indices, a measure of returns from various stock markets across the world for foreign investors, only Indian stocks among the BRIC (Brazil, Russia, India and China) markets gave positive returns in the January-June period this year.
With the debt crisis in the Eurozone hurting the global investors’ sentiment amid a liquidity crunch, most of the emerging markets saw an outflow this year with equities bearing the brunt of the perilous situation.
Indian stocks have provided positive return of 1.78 per cent in the first six months of this year, while Chinese and Russian markets saw declines of 7.68 per cent and 11.05 per cent, respectively.
Brazil saw the worst fall among the BRIC markets with its stock markets declining by 16.46 per cent till June 30 this year, as per the analysis of performances of Morgan Stanley Composite Indices (MSCI) for various nations.
“Most of European investors dumped large chunks of emerging market stocks they held in the past few months due to liquidity problems at home and concerns of the Greek debt crisis spreading to other countries in region,” an analyst at a global securities firm said.
Marketmen said that with some improvement in the global situation last month, Indian stocks were able to recover most of their losses to end at a better ground than its peers.
The 30-share benchmark index of Indian stocks, Sensex, gained 230 points in the January-June period this year to settle at 17,700.90 points on June 30.
Indian stocks have outperformed the MSCI Barra’s emerging market index, which includes all the developing world markets.
The emerging market index gave negative returns to foreign investors to the tune of 7.67 per cent in the reviewed period.
Further, Indian equities have provided returns of nearly one per cent in the past three years (taken together), while taking into account the last five years, they had given positive 17.31 per cent returns and over 12 per cent in the 10 years period.