India's Stock Market Lags Global Markets in 2026

According to Bank of America's latest The Flow Show report, Indian equities have been underperforming in 2026. As of August 19, 2026, India's year-to-date performance is down 9.1% in US dollar terms.

This stands out when compared with gains across several major markets. US equities have risen 13.3%, while Japan equities have gained 18%. Emerging-market equities have advanced 20.6%, and UK and European equities have delivered positive returns, gaining 12.4% and 12.2%, respectively.

India's performance also compares poorly with several Asian markets. Japan is up 18%, while Korea and Taiwan have been among the strongest individual equity markets, with gains of 77.6% and 58%, respectively.