Indian stocks have underperformed other emerging markets by the widest margin in more than three decades as global investors pivot towards China and equities linked to the artificial intelligence boom.
The MSCI India index has returned 2.5 per cent in dollar terms this year compared with 27.7 per cent for the MSCI Emerging Markets index, India’s weakest relative performance since 1993.
Foreign investors have pulled more than $16bn out of India this year, the second-largest drawdown on record, as they book profits from years of strong gains to fund investments in other Asian markets.
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