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China’s $5 Trillion Rout Creates Historic Gap With Indian Stocks

  • MSCI India beat MSCI China by the most since 2000 last quarter
  • Divergence shows up in investor positioning, supply chains too

The relentless plunge in China’s stocks has burnished the appeal of their biggest emerging-market rival India, spurring a divergence that’s rarely been seen before. 

The MSCI India Index rallied almost 10% in the just-ended quarter, compared with a 23% slump for the MSCI China Index. The 33-percentage point outperformance by the India gauge is the biggest since March 2000.