The global equity market totals US$132.5 trillion, equities form about 14% yet they remain the most transparent and real-time barometer of global economic strength. India is the 4th Largest Equity market in the world and contributes 4.4% approx 5.5 trillion USD.
The top ten countries account for nearly 80% of the entire equity market.
In 2025, global investments were primarily focused on AI and mega-cap technology sectors. However, India’s index showed comparatively lower direct exposure to pure-play AI, impacting its performance. Among the top ten global equity markets, eight reached new highs in 2025, while the Indian markets did not.
| Rank (by Market Cap) | Country | Main Index | 1-Year Performance |
| 1 | United States | S&P 500 | 19.89% |
| 2 | China | SSE Composite | 18.27% |
| 3 | Japan | Nikkei 225 | 30.12% |
| 4 | India | Nifty 50 | 6.00% |
| 5 | Hong Kong | Hang Seng | 37.62% |
| 6 | Canada | S&P/TSX Composite | 20.77% |
| 7 | France | CAC 40 | 14.60% |
| 8 | United Kingdom | FTSE 100 | 21.51% |
| 9 | Taiwan | TAIEX | 25.70% |
| 10 | Saudi Arabia | Tadawul (TASI) | -12.38% |
Why India Could Become the Global Favourite Again
India stands out as the only country where top AI platforms like ChatGPT, Perplexity and Google Gemini are available for free to hundreds of millions of users ; no major tech or AI player can afford to ignore its massive digital audience. tapping into one of the largest and fastest-growing data-consuming populations in the world. With digital penetration accelerating, India has become a strategic must-win market for global technology and AI giants.
Other Economic Factor Favouring Indian Equity:
1. Global Inflation Has Peaked
As inflation cools worldwide, central banks are shifting from tightening to easing. Lower rates globally make emerging markets especially India far more attractive.
2. A Weaker US Dollar Ahead
With the Fed expected to cut rates, the USD is projected to soften. When the dollar weakens, foreign institutional investors (FIIs) increase allocation to emerging markets. Historically, India has been a prime beneficiary of these cycles.
India is the most prominent emerging market with unmatched demographics, growth momentum, political stability, and earnings potential.As global liquidity improves and the dollar weakens, FIIs are expected to return strongly, making India a key market to watch for the next leg of global equity expansion.
We recommend making lump-sum long-term positions as we expect Indian markets to bounce back sharply and create a fresh range of all time high
