Newly listed Indian stocks beat benchmark, helped by crowded IPO market

Newly listed Indian stocks are beating the benchmark by the most in seven years, helped by a record pace of initial public offerings that some see as the start of a multiyear expansion for the country’s $3.2 trillion stock market.

A gauge of firms that listed in the past two years has outperformed the Nifty 50 Index by more than 40 percentage points this year, the biggest gap since 2014. Most notable has been food-delivery app Zomato Ltd., the nation’s first “unicorn,” which has climbed 77% since its debut last month.

The number of unlisted firms valued at over $1