Despite some recent volatility around election results India’s stock market remains the big success story in emerging markets over recent years but which stocks have really driven these returns?  The MSCI India index has achieved an annualised total return of 13.9% as at the end of April 2024, nearly double that of the broader emerging markets index.

In common with most less mature equity markets, the India is dominated by some really big companies, several of which have a conglomerate structure with operations across a range of industries. The top 10 names by weighting in the index account for 36% of the total.

RELIANCE INDUSTRIES

Top of the list is Reliance Industries (RELIANCE:NSE). A classic conglomerate business based in Mumbai its business interests span energy, petrochemicals, natural gas, retail, entertainment, telecommunications, mass media, and textiles. As such it is tied to several aspects of India’s economic transition and growth.

ICICI BANK

Banking giant ICICI Bank (ICICIBANK:NSE) serves both commercial and retail customers. Unlike Western counterparts it has grown rapidly in recent years as it benefits from more and more individuals making use of financial services and products in a country where more than a hundred million people remain unbanked.

INFOSYS

Bangalore-headquartered Infosys (INFY:NSE) is a multinational information technology company which provides business consulting, information technology and outsourcing services. In April the company reported the lowest growth in its 43-year history.

This outlook is part of a series being sponsored by Templeton Emerging Markets Investment Trust. For more information on the trust, visit www.temit.co.uk

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