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India stays ahead of all global markets: MSCI
By agencies
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Wednesday, 07 December 2005, 20:30 IST
MUMBAI: MSCI India, the coveted index followed by several foreign institutional investors rose sharply in November after its big October fall, recouping all the losses by outperforming a rising emerging market index. India with a 10 percent rise was ahead of almost all the major global markets, a newspaper said.
India's year-to-date performance relative to emerging markets was back into positive territory in November. In Asia Pacific only Korea outperformed India. Globally, India trailed Turkey, Russia and Korea in both, returns in local currency terms and dollar terms, the Financial Express said.
India posted 9.8 percent returns in dollars, while Turkey, Russia and Korea registered dollar returns of 19.5 percent, 13.6 percent and 13.5 percent, respectively. In local currency terms, Korea (+12.0 percent), India (+11.8 percent), and Taiwan (+8.8 percent) led the rally, while Thailand (-2.2 percent) and Malaysia (-1.6 percent) significantly under performed.
The small- and mid-cap indices performed almost in line with BSE Sensex, but continued to stay ahead on a year-to-date basis. November, like the previous two months, was marked by volatility caused essentially by the volatility in risky assets globally.
According to a report by Morgan Stanley, India's year-to-date performance ranking improved to 13 out of the 26 emerging markets, and it is once again outperforming the emerging market benchmark, albeit by less than 0.5 percent. India continues to fare better in an Asia/Pacific context, with 11 percent out performance year-to-date, the paper said.
India' performance was linked with recovery overseas. Global markets rebounded by 4.0 percent in November (or by 3.1 percent in dollar terms), on the back of generally better-than-expected economic indicators and lower energy prices. The rally followed a 2.0 percent decline in the previous month. All major markets rallied, with Japan's Topix, the U.S. S&P500 and the MSCI Europe rising by 6.3 percent, 3.5 percent, and 3.5 percent, respectively, the paper said.
The markets appeared to focus on generally strong economic indicators, rather than worrying about an imminent ECB rate rise or the near-inverted U.S. yield curve.
Cyclical sectors outperformed in November, led by tech (+7.7 percent), the materials (+6.5 percent), and the industrials (+5.9 percent) on the back of strong growth indicators.