Indian equities post their largest underperformance against emerging-market peers in nearly three decades, data shows.
Indian stocks have lagged emerging-market peers by 44.9% over the past 12 months, the widest gap since 1996. The underperformance reflects a sharp divergence in returns measured by the MSCI India index against broader emerging-market benchmarks.
The last comparable period of such relative weakness occurred during the Asian financial crisis. Analysts point to elevated valuations, policy uncertainty, and sector-specific headwinds as contributing factors to the recent underperformance.
No immediate market reaction was detailed in the data, though the trend underscores growing investor caution toward Indian equities amid global reallocation pressures.