Global equity market performance in 2026 reflects a clear divergence in investor preferences. The US and Japan benefited from the artificial intelligence investment cycle, while Brazil gained from its commodity exposure and relatively attractive valuations among emerging markets. In contrast, China continued to struggle with weak domestic demand.
India’s underperformance is particularly notable because it contrasts with the country’s favourable economic growth outlook. Equity returns were weighed down by sustained foreign investor selling, a weaker rupee and rising crude oil prices.
Source: Bloomberg. *2026 returns are YTD based on 26 October 2026 closing values. Other years returns are calculated between the first and the last trading day closing values. Returns are normalised to the Indian rupee. The 10-year return is the compounded average return.
Over the past decade, developed markets have largely outperformed emerging peers, with the US leading wealth creation. Germany and Japan also delivered strong compounded returns, supported by industrial strengths. India remained a competitive long-term performer, but despite its robust economic growth, its stock market returns lagged.
India’s underperformance is particularly notable because it contrasts with the…