00:00It's hard to spot a bull on India's stock market this year.
00:03After seeding its spot as the world's fifth largest equity market to Taiwan last week,
00:08India's stock market value of $4.8 trillion was surpassed by South Korea this week,
00:13powered by a ferocious rally in chip makers, Samsung Electronics and SK Hynix.
00:18India's receding status among the biggest equity markets in the world
00:22is just the latest sign of a deeper malaise.
00:24The nation's assets have failed to keep up with a global stock rally
00:28centred around artificial intelligence, slowing corporate profit growth,
00:33rising energy costs due to the conflict in the Middle East
00:37that has choked supplies of essential cooking gas,
00:39and the plummeting currency have worsened the pain.
00:43The benchmark index has fallen 11% in 2026,
00:47underperforming most of its emerging market peers,
00:49thanks to record outflows from global investors.
00:52Make no mistake, India is still the fastest growing large economy in the world.
00:57There is a burgeoning middle class government efforts to boost export-based manufacturing
01:01and investments to upgrade its infrastructure.
01:04Yet, global banks from JP Morgan to Nomura and HSBC
01:08have downgraded their outlook on nation's stock,
01:12citing earnings pain from higher oil prices
01:15and perceived lack of exposure to the so-called AI trade.
01:18That stark observation points to a lackluster outlook for the rest of the year,
01:22as the South Asian nation looks to salvage its decade-long run of stock market gains.
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