The MSCI India index beat the MSCI world gauge of developed nations by more than six percentage points last month, the biggest gap since 2018.
The average return from the domestic gauge 12 months out after such relative outperformance is 15%, according to data compiled by Bloomberg.
The index is also eyeing its eighth straight monthly advance. Such a streak has only been seen twice before in the past two decades, in 2003 and 2007. The average return a year after these observations was just over 19%.
“While we expect the good run for the indexes to continue, the market may remain narrow as investors are now betting on proven stocks and don’t mind overpaying for them,” said Deepak Jasani, head of retail research at HDFC Securities Ltd.
A tide of foreign…