India’s stockmarkets are roaring. They also have serious faults

flourished in 2022. Strong performers include ones in commodity-exporting countries like Brazil, Indonesia and the Gulf states, which have benefited from the squeeze on natural resources. They also include an oddity: India. The country’s Nifty 50 and Sensex indices reached record highs at the end of November. Indian stocks are up 4% in local-currency terms this year. Global stocks are down by 20%.All this means it is a hopeful time for India. Investors are reconsidering their exposure to China, the largest emerging market. Even after a rebound triggered by China’s reversal of its “zero-covid” policies, the China index has fallen by a quarter since the start of 2020, reducing its annual return over the past decade to below 1%. To many fund managers desperate for diversification, India looks the most promising alternative.