The performance of Indian Stock Markets has been weaker than other emerging markets in 2025. This is when there has been a good recovery in Indian markets since mid -April. This has happened for the first time in the last six years. The sluggish speed of the economy and more valuations of shares can be the reasons for this. This year (2025) So far, the MSCI India index has risen only 2.33 percent. In comparison, MSCI Emerging Market Index has jumped 9 percent. For the first time since 2020, Indian markets have given less returns from emerging markets.
Indian markets have returned from mid -April
From mid -April Indian markets I have got good recovery. US President Donald Trump’s decision to ban the reciperook tariff was a good boom in the market. From mid -April MSCI India Index It has climbed more than 11 percent. During this time MSCI Emerging Markets Index I have gained about 10 percent. Dhananjay Sinha of the System Group said that despite the recent decline, Indian markets are expensive. This is a disappointing thing.
Foreign institutional investors have sold in India
Foreign institutional investors (FIIs) have sold in Indian markets. However, his stand has changed for some time. Meanwhile, domestic institutional investors (DIIs) have given great support to the domestic market by good purchases. Sinha says that the weak performance of Indian markets may be due to the selling of Foreign Niwas along with Fundamentals Factors. They estimate that the Indian markets will continue to ups and downs in the coming weeks.
Indian market is expensive despite the recent decline
MSCI India Index is currently trading at 22.31 times the estimated earnings of next year. This is higher than the long term average of 19.86 times. In comparison, trading is being done at 12.25 times its forward earnings in MSCI Emerging Index. This is slightly higher than an average of 11.19 times its 10 years. It is worth noting that from the beginning of this year to mid -April, there was a sharp decline in the Indian markets. Sensex and Nifty had fallen by more than 5.3 per cent. MSCI India Index fell 7.1 percent. During this time Fiis sold $ 16.5 billion in India.
Also read: Nifty will not cross 25000 at the moment, but there are opportunities for earning in consumption and pharma stocks
These sectors expected to have better growth growth
In the fourth quarter of the FY25, Entry (EPS) of Nifty 50 companies increased by 4.9 per cent in the fourth quarter. Now analysts have estimated the earnings growth 5.3 per cent in FY26 and 5.9 per cent in FY27. The EPS growth of automobiles, cement, oil and gas and NBFC may be low in the next financial year. On the other hand, Telecom, Metals & Mining, Consumer, Oil & GAS and banks are expected to be good.
