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India’s EM outperformance slows, China stages comeback

Business Standard

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October 30, 2025

The Indian stock market, which led emerging market (EM) performance for much of the past decade, is now witnessing a phase of relative consolidation with peers such as China and Taiwan staging a strong comeback.

- BS REPORTER

Analysts, however, said that fiscal and monetary support, along with a rising domestic investor base and strong returns, position the market for renewed momentum.

In the past 12 months, the MSCI China has surged 35 per cent, the MSCI EM has advanced 26 per cent, while MSCI India was nearly flat in dollar terms.

The latest underperformance comes after strong gains over the past five years. Between October 2020 and October 2025, the domestic equities rose 13.7 per cent annually, while the MSCI EM managed to rise just § per cent. Meanwhile, between October 2015 and October 2020, the MSCI EM outpaced India with gains of 5.4 per cent versus 3.6 per cent.

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