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Some key findings from this edition:

 * India's earnings growth has been more consistent than its EM peers. Between 2010 and 2025, India's earnings grew at 9.1% CAGR, with only three down years out of 16, compared with 6.7% CAGR for Taiwan and 3.1% for South Korea.

* India has witnessed a significant de-rating despite strong earnings growth. Since 2019, India's earnings compounded at 17.5% annually, while the index returned 10.7%. At current starting valuations, the report's scenario suggests that trend earnings growth of around 9.1% could support approximately 9–10% local-currency returns without meaningful re-rating.

* Korea and Taiwan's recent earnings growth has been concentrated and cyclical. SK Hynix, TSMC and Samsung Electronics account for nearly 70% of profit growth in their respective markets. Korea's post-Covid earnings CAGR of 26% compares with its longer-term CAGR of 3.1% between 2010 and 2025.

* India has a deep pool of high-return businesses. Around 28% of Indian companies delivered a 10-year average return on equity above 20%, second only to the US among the markets studied.

* Estimated promoter supply has exceeded FPI equity selling. Over the 12 months ended September 2026, estimated promoter supply stood at $42.7 billion, compared with approximately $32 billion in FPI equity sales. Equity and hybrid mutual fund inflows stood at $48.7 billion during the same period.

* Promoters tend to sell into strength and at elevated valuations. A study of approximately 750 Indian listed companies found that promoter sales followed a median 39% rally in the preceding 12 months. Nearly 64% of promoter sales occurred in the top 40% of stocks' own historical valuation ranges. Following promoter sales, stocks lagged the broader universe by a median 2.1 percentage points over the subsequent 24 months.

Sahil Kapoor, Head – Products & Market Strategist - SVP, DSP Mutual Fund

Sahil Kapoor has a wide-ranging experience across asset class and businesses. He started his career 14 years ago as a discretionary trader at Edelweiss markets desk and moved on to Wealth Management. He has been instrumental in initiating, nurturing and scaling research desks specializing in equities, charting, derivatives, commodity and currency markets. In his last role he conceptualized macroeconomics and markets team specializing in asset allocation, market analytics and thematic trends.

Sahil Kapoor is Head – Products & Market Strategist at DSP Mutual Fund. In this role leads the products vertical and helps strengthen macroeconomic tracking for the investment team. Sahil has a master’s degree in financial Markets and a graduate degree in Science from Panjab University.

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