New Delhi [India], January 5 (ANI): India’s equity market recorded its weakest relative performance in Asia since 1995 in 2025, impacting regional portfolios with significant India exposure, according to the latest GREED & Fear report by global brokerage Jefferies.
The Jefferies Asia ex-Japan long-only portfolio, historically overweight in India, underperformed its benchmark last year due to subdued Indian equity returns. Indian stocks in the portfolio declined by an average 2.4 per cent in US dollar terms in 2025, while Chinese stocks in the same portfolio rose by an average 23 per cent.
At the end of 2025, India accounted for 36 per cent of the Asia ex-Japan portfolio, down from a peak of 50 per cent in February 2024. Despite the reduced exposure, India remained the largest contributor to relative underperformance during the year. Jefferies described 2025 as a break from India’s long-standing leadership in Asia, marking nearly three decades of weakest relative performance versus regional peers.
The India-focused long-only equity portfolio launched by Jefferies in July 2021 also lagged its benchmark, rising marginally by 0.2 per cent in US dollar terms in the most recent quarter, compared with a 4.8 per cent gain in the MSCI India Index. For the full year, the portfolio declined 2.7 per cent, while the benchmark rose 4.3 per cent.
Despite short-term underperformance, Jefferies emphasised that India remains a long-term outperformer. Since inception, the India long-only portfolio has delivered an 81.9 per cent total return in US dollars, outpacing the MSCI India Index’s 48.7 per cent gain and the Nifty’s 45.7 per cent rise.
The report noted that India’s weaker performance contrasted with stronger returns in other emerging markets, particularly China, reflecting a rotation in regional leadership rather than a structural decline in India’s long-term equity potential.
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