New Delhi, July 9 -- India's valuation premium over emerging-market stocks is shrinking, but it is still wider than in 2021, according to a Mint analysis of MSCI data. Investors are considering whether the world's most expensive major market is now a better deal.

As of 2026, the premium of MSCI India over MSCI Emerging Markets has narrowed to 75%. This is down from 119% last year and a post-pandemic high of 164% in 2024. It still exceeds the 65% premium recorded in 2021, showing how Indian stocks continue to trade compared to others.

Fund managers believe the comparison is skewed by Taiwan and South Korea. These countries make up a large part of the MSCI EM index and have seen semiconductor earnings rise due to artificial intelligence-r...