India stocks best among BRIC, developed world: study

According to an analysis of MSCI Barra indices, a measure of returns from various stock markets across the world for foreign investors, Indian stocks have outperformed their global peers, including in the US, the UK and China in FY 2009-10.

Indian stocks (large and mid-caps) have provided a return of 113.58 per cent in the 12 months period ended March 31, 2010, against 77.26 gains provided by MSCI Barra’s emerging market index, covering all developing nations. Among the emerging BRIC (Brazil, Russia, India and China) nations as well, the Indian stocks gave the highest returns, gaining 113.5 per cent in the past financial year.

While, Russian and Brazilian stocks also performed well with 103 per cent and 96.69 per cent return for investors, respectively. However, China stocks lagged behind gaining around 54 per cent in the reviewed fiscal.

The Bombay Stock Exchange’s 30-share Sensex, the benchmark index of Indian stocks, gained over 7,819.27 points in the fiscal year to settle at 17,527.77 points on March 31, 2010. Among the developed nations, US stocks gave investors returns of 46.64 per cent in the reviewed period, while Britain’s market provided a gain of 53 per cent, as per the analysis of performances of Morgan Stanley Composite Indices for various nations.

All developed markets have given positive returns to investors in the period with Sweden topping the pack with 83 per cent gains. It is followed by Singapore (81 per cent) and Australia (79.71 per cent).

According to an annualised historical return analysis, Indian equities have provided returns of just 9.25 per cent in the past three years and close to 22 per cent while taking into account the last five years and 10.89 per cent in the 10 years period.