Businessmarkets
Five reasons India's stock market is sinking despite economic growth
India's economy is expanding at an impressive rate of over 7%, yet its equity markets are experiencing one of the worst performances among major economies in 2026. Benchmark indices have suffered prolonged losing streaks, and retail investors are seeing their wealth erode. While domestic investors have poured money into mutual funds, foreign institutional investors have withdrawn billions. This article examines the primary factors driving the disconnect between a booming national economy and a struggling stock market.