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Updated December 20th, 2023 at 15:05 IST

Indian equity market shines amid challenges in other emerging economies: Satrix

Over three years, the Indian Index delivered a healthy annualised return of 12.7 per cent, outperforming broader emerging markets and China.

Business Desk
Indian stock market
Indian stock market | Image:Unsplash
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South African investment platform Satrix , has commended the robust performance of the Indian equity market amidst challenges faced by other emerging economies. Despite the global pandemic and regional instabilities, the Indian market has demonstrated four years of remarkable growth, according to a statement from Satrix.

One of Satrix's notable products, the Satrix MSCI India Exchange Traded Fund (ETF), holds positions in 131 large and mid-cap Indian companies, representing nearly 85 per cent of the Indian stock market. This allows investors diversified access to one of the world's fastest-growing emerging market economies.

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The top holdings of the ETF include companies from the Financial and Technology sectors, such as Reliance Industries, ICICI Bank, Infosys, HDFC Bank, Tata Consultancy Services, Axis Bank, Bharti Airtel, and Bajaj Finance. Industrial giant Larsen and Toubro and consumer goods manufacturer Hindustan Unilever also feature among the top ten.

Satrix highlighted the MSCI India Index's outstanding performance, citing a year-to-date return of 11.8 per cent compared to 5.7 per cent for the MSCI Emerging Markets group and a -9 per cent return for China as of the end of November, all measured in USD total returns. 

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Over three years, the Indian Index delivered a healthy annualised return of 12.7 per cent, outperforming broader emerging markets and China.

The statement attributed India's success to its resilient tech sector, a strong post-Covid recovery, and a strategic shift towards higher-margin industries. 

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In contrast to China, India has been less affected by geopolitical challenges, actively engaging in trade deals with both emerging and developed market partners.

Satrix suggested that adding exposure to Indian equities through its Satrix MSCI India ETF could provide diversification benefits for investors seeking alternatives to local and global developed market equities. 

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However, the company stressed the importance of seeking professional advice or conducting thorough research to assess individual risk tolerance before making investment decisions.

(With Reuters Inputs)

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Published December 20th, 2023 at 09:25 IST

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