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India outperformed all other emerging market countries within the Russell Emerging Markets Index, with a 4.4% return in the three market days from the May 16 election of Narendra Modi and the conservative Bharatiya Janata Party (BJP) through May 20. India's 22.5% return year-to-date as of May 20 is among the leading country components within the Russell Emerging Markets Index.
Russell Investments senior emerging markets portfolio manager Gustavo Galindo:
"As elections have approached in India, we believe the expectation of what could be a more market friendly government has helped equity market performance, with May 16 election results igniting a rally in recent days. We believe Modi's win has been a positive for the Indian market as measured by Russell index returns, particularly because he did not have to form a coalition government. If Modi is successful in introducing proposed changes, India could potentially be poised for a period of strong returns which could bring positive sentiment to emerging markets."
Russell Index Returns
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Index 2014 YTD as of May 20 May 16-May 20
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Russell Emerging Markets Index 4.0% 0.3%
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Index Country Constituent 2014 YTD as of May 20 May 16-May 20
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Brazil 7.9% -2.2%
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Chile 0.8% -0.8%
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China -6.1% -0.1%
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Colombia 7.7% -0.5%
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Greece -3.5% -0.5%
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India 22.5% 4.4%
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Indonesia 26.1% -2.1%
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Korea 5.1% 0.3%
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Malaysia 3.8% 0.2%
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Mexico 1.1% 1.1%
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Philippines 20.8% 0.1%
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Poland 0.8% 0.6%
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Russia -9.1% 3.9%
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South Africa 10.3% 0.4%
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Taiwan 3.0% 0.2%
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Thailand 11.4% -0.2%
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Turkey 14.4% -0.7%
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UAE 23.4% -7.6%
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Source: Russell Investments. Returns are total returns (reflect reinvestment of dividends and distributions) and are denominated in euros.
