Bright days ahead for India, emerging market equities in 2021 and beyond

The performance of Indian equities will mirror a larger trend of EMs doing better than developed markets

One of the most enduring features of the Indian stock market participants is that all of them completely ignore everything about financial markets happening anywhere else in the world. The refrain one hears non-stop is how the Indian stock market has been booming, how this heralds a new era for equity investing in India.

Now for some facts: in the calendar year 2020, India ranked number 20 in a list of 45 markets, in terms of returns, delivering 12 per cent.

Vietnam delivered 80 per cent and several markets delivered double India's returns, in 2020, including slow-growing Japan.

It was