India’s economy, which has been expanding at the quickest pace among major global economies, is seeing its stock market underperform relative to other leading markets this year. Investors appear cautious amid economic shifts, with key benchmarks lagging despite strong GDP growth. The disconnect highlights how broader market sentiment can diverge from fundamental economic strength. Analysts are examining whether domestic factors or global trends are driving the divergence.


The world's fastest growing major economy has one of the worst performing major equity markets in 2026.