New Delhi [India], August 20 : Despite facing many political upheavals and international crises the Indian stock markets have demonstrated remarkable resilience and growth in the last 25 years outperforming even renowned investment firms like Berkshire Hathaway, highlighted a report by Helios, an India focused Singapore based asset management company.
The report stated that the Indian stocks in the Nifty 500 index achieved an annual return of 12.56 per cent per annum as compared to 9.52 per cent by Berkshire Hathaway and that too in USD terms. This impressive performance highlights the potential of Indian equities as a lucrative investment avenue for discerning investors.
"For the past 25 years (Jul 31, 1999, to Jul 31, 2024) Indian Equity Market Index has given higher returns than one would have gained from investing in shares of Berkshire Hathaway (and yes in USD terms)" said the report.
The report also added that India's economic landscape has been marked by a series of crises, including eight coalition governments, three changes of government between 1996 and 1998, a government that lasted only 13 days, US sanctions after the May 1998 nuclear test, followed by Kargil war in 1999, and many global events, yet the country's equity market has consistently demonstrated resilience and outperformance.
From the compulsions of coalition governments and market shocks to international sanctions and terrorist attacks, India has weathered numerous storms while maintaining a trajectory of growth.
Historically, India has faced significant challenges, including the Asian Crisis in 1997, the Russian crisis in 1998, and the global financial crisis in 2008. Each of these events tested the robustness of the Indian economy, and the markets rebounded, showcasing a remarkable ability to recover.
For instance, despite a 17 per cent market fall in 2004 due to a surprise change in government, the long-term outlook for the economy remained positive, with investors recognizing the underlying potential of the Indian economy.
"India outperformance despite crises, events and volatility," said the report.
The period from 2011 to 2015 saw further challenges, including corruption scandals and back-to-back droughts. However, these crises did not deter investor confidence.
Despite facing numerous crises and volatility, India has proven to be a long-term outperformer says the report.
According to the stock market experts the combination of a young demographic, increasing urbanization, and ongoing reforms positions India as a compelling investment destination, capable of navigating challenges while unlocking significant growth opportunities.
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