BSE Sensex rises 7% under Modi government, outperforms major global indices

The Indian benchmark index, BSE Sensex, has risen about 7% in two years under the Modi government, outperforming the major indices in the world, which have struggled to perform amid global economic slowdown. In the past two years, the MSCI Emerging Market Index has dropped 23.2%, MSCI World Index has fallen 2%, MSCI Emerging Asian Market Index is down 15.2%, MSCI Emerging Asian ex-Japan Index has declined 14.8% and MSCI BRIC has lost about 24%.

Indian markets have shown resilience amid economic headwinds — the crash in commodity prices have hurt many emerging markets, while slowdown in Europe has hurt developed markets such as the UK, Germany and France, where the markets declined up to 8% in two years.



Among the emerging and Asian markets, Russia, Brazil, Taiwan, Hong Kong and others have fallen by as much as 31%. The withdrawal of economic stimulus by the US Federal Reserve, increase in interest rates and strengthening of US Dollar had made many global investors risk-averse towards emerging markets, which has also impacted performance over the same period.