Indian stock market delivers 18 pc annualised returns in 5 years; outshines China, global peers

THE Indian stock market has delivered stellar performance over the last five years, generating 18 per cent annualised returns in US dollar terms -- the highest among global markets, a report said on Friday.

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India’s long-term outperformance stands out as it surpasses the 12 per cent returns delivered by world and developed markets and is more than four times higher than those of other emerging markets, according to data compiled by the Bandhan Mutual Fund.

In sharp contrast, China’s markets declined 2 per cent in May 2025, making it one of the few major economies to end the month in the red.

Small-cap stocks have played a leading role in India’s growth story, outperforming across the board -- whether over the last three months, five years, or since the pandemic lows of March 2020.