India Posts Worst Relative Equity Performance in Asia Since 1995
India’s equity market recorded its weakest relative performance in an Asian context since 1995 during 2025, significantly impacting regional portfolios with high India exposure, according to the latest GREED & Fear report by global brokerage Jefferies. The sharp underperformance marked a notable break from India’s long-standing leadership within Asian equity markets.
Heavy India Exposure Drags Jefferies’ Asia ex-Japan Portfolio
The Jefferies Asia ex-Japan long-only portfolio, which historically carried a strong overweight position in India, underperformed its benchmark last year largely due to weak Indian equity returns. Indian stocks within the portfolio declined by an average 2.4 per cent in US dollar terms in 2025, while Chinese stocks in the same portfolio rose by an average 23 per cent. Although India’s weight in the portfolio was reduced to 36 per cent by the end of 2025 from a peak of 50 per cent in February 2024, it remained the single largest contributor to relative underperformance.
India-Focused Portfolio Lags in 2025 Despite Strong Long-Term Returns
Jefferies’ India-focused long-only equity portfolio, launched in July 2021, also lagged its benchmark. While the portfolio rose marginally by 0.2 per cent in US dollar terms in the most recent quarter, it underperformed the MSCI India Index, which gained 4.8 per cent over the same period. For the full year, the portfolio declined 2.7 per cent, compared with a 4.3 per cent rise in the benchmark.
Long-Term Outperformance Intact Amid Regional Rotation
Despite the weak showing in 2025, Jefferies emphasised that India remains a long-term outperformer. Since inception, the India long-only portfolio has delivered an 81.9 per cent total return in US dollar terms, significantly ahead of the MSCI India Index’s 48.7 per cent gain and the Nifty’s 45.7 per cent rise. The report noted that India’s underperformance contrasted with stronger outcomes in China and other emerging markets, pointing to a rotation in regional leadership rather than a structural weakening of India’s long-term equity story.
(This article has been syndicated from ANI, Edited for clarity)
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