However, despite the lacklustre performance in 2023, Nifty-50’s positive divergence from global indices, seen since 2020, is still intact. In this period, Nifty has clocked annual average returns of about 10 per cent against 1.8-6.7 per cent returns by other global indices. Underdog in 2010-2020To recall, Nifty had similarly outperformed global indices in 2005-09. However, future convergence or divergence of the Nifty with the global indices will depend upon what happens on the earnings front. As of now, issues of corporate overleveraging have cropped up in some pockets; persistent inflation has also tempered earnings growth in Q3FY23.

Source: The Hindu March 04, 2023 23:45 UTC