Alquity’s Gonzalez: Looking beyond India’s valuation debate

By Francisco Gonzalez, an ESG analyst at Alquity Following a difficult 2025, Indian equities have been a laggard again this year. In dollar terms, the country’s equity market is down roughly 8% year-to-date, while AI-driven markets like Korea and Taiwan have surged 70% and 86% respectively, pulling the broader Emerging Markets index up 23%. Yet this weaker market performance contrasts with an increasingly resilient economic and corporate backdrop in India. India’s fundamentals remain strong The market weakness has been driven largely by the US-Iran conflict and concerns over economic growth, which triggered significant foreign equity outflows in Q1, coupled with…