India’s Shariah indices lag global peers

During the last three months, domestic Shariah indices, benchmarks for equity investments complying with the Islamic laws, have underperformed their global counterparts in beating broad market indices.
S&P 500 Shariah (US) and MSCI EM Islamic index has been able to generate higher returns than its broader market counterparts.
It seems that a shariah index tends to give higher returns during a bull phase in the equity market and underperform the broader market in a bear phase.

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