The Indian market has underperformed YTD compared to states like Taiwan, the US & Japan, and Germany. Key reasons are premium valuations, that failed to sustain the accelerated growth observed from CY21 to 23. Additionally, investments have shifted from large-cap to mid-cap stocks, which are not reflected in the Nifty50 index. The market has also been impacted by reduced FII inflows amid national election risks and weak rural demand caused by a subdued agricultural sector.
Country |
Index |
1 yr. forward PE |
CY23 Return (%) |
YTD Return (%) |
Taiwan |
TWSE
|
19
|
27
|
31
|
US – Nasdaq |
CCMP
|
29
|
43
|
18
|
Japan |
NKY
|
21
|
28
|
15
|
| US – S&P 500
|
SPX
|
21
|
24
|
15
|
Germany |
DAX
|
12
|
20
|
9
|
India |
Nifty50
|
20
|
20
|
8
|
UK |
UKX
|
12
|
4
|
7
|
South Korea |
KOSPI
|
10
|
19
|
6
|
US-Dow Jones |
INDU
|
18
|
14
|
4
|
France |
CAC
|
13
|
17
|
2
|
China |
SHCOMP
|
11
|
-4
|
1
|
The risk of underperformance has…
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