India’s stock markets lagged behind global peers in 2025, posting the slowest market capitalization (mcap) rise in three years. While global equity markets surged, India’s performance was weighed down by foreign fund outflows, high valuations, and softer corporate earnings, keeping the country at the lower end of global rankings.
Analysts say that despite pockets of strong sectoral performance—such as metals and auto—the broader market struggled to match the rally seen in the US, Europe, and parts of Asia, highlighting the challenges for investors seeking high returns in the near term.
