When the US sneezes, the world catches a cold—this is a well-known market maxim. But, we find a break with this tradition, with Indian equities have been charting their own path.

Indian sectoral indices are outperforming the US counterparts by a wide margin. Notably, the 10-year yield spread between India and the US is at the lowest since June 2009.

Primary reasons for India’s outperformance are government policies, growing share of corporate profit in GDP and sustained domestic flows.

Here are charts that give some perspective.