India’s markets trail global equities as benchmarks fall 10-12% so far in 2026

India’s equity market has continued to underperform in 2026 with several factors making domestic stocks unattractive-especially to foreign institutional investors (FIls). While many global markets are trading flat or higher this year, India’s benchmarks-the BSE Sensex and the NSE Nifty50-have fallen roughly 10-12%. The gap widens over a one-year horizon: markets such as Taiwan and South Korea have surged by roughly 100-200% over the same period. India underperformed global peers in 2025 despite a 9–10% gain in the Sensex and Nifty, weighed down by global headwinds, steep US tariffs and relentless FII selling. By comparison, major markets posted stronger returns:…