New Delhi, Feb. 4 -- Emerging markets showed notable resilience despite heightened volatility at the start of 2026. However, India and Indonesia remained underperformers, even as emerging market assets delivered a strong start to the year, according to a Deutsche Bank report.

The report noted that emerging market (EM) equities posted robust gains in January, with the MSCI Emerging Markets index rising over 8 per cent, supported by broad-based outperformance across regions.

It stated "The only major EM equity markets down for the month were India and Indonesia - the latter under stress on concerns around governance and liquidity after MSCI warned of potentially downgrading them to frontier market status".

Markets such as Peru, South Kor...