Indian equities declined in the first quarter, with the MSCI India Index falling 18.13%, as geopolitical volatility and the country’s reliance on energy imports weighed on sentiment.
India imports roughly 90% of its oil, with a significant portion flowing through the Strait of Hormuz.
At the sector level, the most notable contributions to returns came from consumer discretionary (+0.86%), financials (+0.43%), and industrials (+0.43%).
India lagged EM peers last year due to trade-related uncertainty, which largely resolved earlier this year, before pulling back again on geopolitical concerns tied to energy imports.
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Indian equities, as defined by the MSCI India Index, declined in a volatile quarter, while active positioning and stock selection in NDIA drove outperformance versus the broad Indian equity market.
