India's Stock Market Surpasses China's in Remarkable Growth

India's stock market is outperforming China's as it attracts billions of dollars in inflows from international funds and a growing number of small investors. The MSCI India index has gained over 7% this year, while the MSCI China index has lost almost 11%. Foreign investors have poured $8.3 billion into Indian equity funds between January and August, the highest amount on record for the period. Despite concerns of overvaluation, investors and analysts believe India's booming economy will continue to drive stocks higher. India's GDP per capita is at a similar level to China's in 2007, indicating its growth potential. The stability of the Indian rupee against the US dollar has also contributed to the market's success.