Sensex peaks at 86,000, yet India is among worst performers in a global bull run

Global Markets Outpace India: FPIs Withdraw Over ₹1.48 Lakh Crore Since January 2025

India's stock market has underperformed sharply compared to other Asian markets, which have seen significant growth in the past year. The country's muted returns have led Foreign Portfolio Investors (FPIs) to withdraw a substantial amount of money from Indian equities.

Asian Markets Deliver Higher Returns

• Hong Kong jumped 33.13 per cent, making it one of the top-performing markets in Asia.
• Japan saw a 31.53 per cent increase in its market value.
• Spain's market rose by 40.63 per cent on a year-over-year (Y-o-Y) basis.

European Markets Also Experience Strong Growth

• London's market advanced 17.29 per cent.
• Italy's market rose 29.75 per cent.
• Brazil's market climbed 26.58 per cent.
• China, despite facing growth anxieties and structural challenges, still managed to return 16.90 per cent.

FPIs Withdraw Money from India

FPIs, known for their swift risk-on and risk-off strategies, saw little incentive to remain overweight on India when other regions offered sharper, faster, and more compelling returns.

“They (FPIs) consistently withdrew money from India and deployed it in markets like South Korea, Mexico, Japan and Hong Kong where the year-long returns were dramatically higher. Even China, which typically lags, outpaced India,” the CEO of a global investment firm told The Indian Express.

Some Markets Struggle

• Australia gained only 2.11 per cent, reflecting subdued investor sentiment.
• Russia's market rose 3.82 per cent, weighed down by the continuing fallout of the Ukraine conflict and the broader geopolitical isolation of its financial system.
• The US market experienced mixed performance, with the Dow Jones Industrial Average delivering a tepid 6.25 per cent return and the S&P 500 index posting a relatively stronger 13.54 per cent gain.

India's Economy Remains Strong

Despite the underperformance of its stock market, India's economy remains one of the world's fastest growing, with a projected 6.5 per cent GDP growth for 2025–26 and a robust 8.2 per cent GDP expansion in the September quarter.

Domestic Investors Provide Stability

Domestic institutional investors and retail savers have provided the backbone that kept Indian indices steady and eventually pushed them to new highs, even as foreign money departed.

Key Question: Can India Regain Its Relative Performance Edge?

As the global environment shifts again, driven by interest rate expectations, geopolitical developments and trade realignments, the key question is whether India can regain its relative performance edge.