Why India’s stockmarket is roaring

INDIANS CAN BEGDPMSCI excused for looking eastward with more than a little envy. In 1980 India’s per person, in purchasing-power-parity terms, was nearly twice that of China. Then the dragon took off. By 2021 Chinese incomes per person were more than double those in India. Yet when it comes to the performance of the stockmarket over the past year, at least, India can declare triumph. The Sensex 30 index of stocks rose by nearly 22% last year, outperforming not just the Shanghai bourse but the emerging-markets index, and indices in many rich countries, too. As we wrote this, the Sensex was up so far this year, compared with declines elsewhere.The healthy showing has been enough to lure Indian retail punters to the market. According to , a newspaper, bank accounts opened by customers with the intention of investing in stocks and bonds rose above 77m last year, compared with 39m in 2019. What lies behind the market’s extraordinary performance?