Why India can likely outperform China for a fourth straight year in 2024
India's economic growth (nominal growth that exceeded 12 percent in 2023, and which could come in at the same level or even higher in 2024) and improvement in currency stability relative to China are the factors in India's favour
MSCI India is moving towards a third straight year of outperformance of MSCI China in 2023. India is currently our top pick in Asia ex-Japan / emerging markets (EM) equities, and we think a fourth straight year of outperformance of EM and China is likely in 2024. Central to our bullish view on India versus China's performance is the trend in earnings.
Starting in early 2021, MSCI India US dollar earnings per share (EPS) has grown this cycle by 61 percent versus a decline of 18 percent for MSCI China. As a result, Indian earnings have powered ahead on a rela...