Stock Market: India's stock market suffered the biggest shock in 30 years!:

News Topical, Digital Desk : Goldman Sachs' report has made it clear that India's stock market has performed the worst in Asia in the year 2025. While MSCI Asia Pacific and Emerging Markets are up 21 to 22%, India has risen by just 1%. Foreign investors have sold about $28 billion so far from September 2024, which has put pressure on the market.

Biggest setback in 30 years- India's stock market has become the weakest performer in Asia this year. Reports show that the MSCI India index is up just 1% so far in 2025, while the MSCI Asia Pacific and Emerging Market indexes are up 21% and 22%. That is, India is behind by about 20%-this is the biggest underperformance in 30 years.

Why has this happened- The report states that foreign investors have sold shares worth $28 billion since the September 2024 high. This has been the biggest FPI selling in emerging markets. The continuous selling has put India far behind other markets including China. India is also performing 65% less than China.

Reports say that India's stock market is expensive- India's forward P/E is at 22.5x, which is higher than the 10-year average. However, the premium against China has now come down to a 3-year low of 70%, meaning the valuation gap is slowly normalizing.

When will FIIs return? GST rate cuts have improved earnings sentiment in sectors like consumer staples, auto and durables. Domestic fund flows have also been strong in August—investment of $3.8 billion came in. SIP flows have slowed slightly but are still stable. It is difficult for the Indian market to outperform without the return of foreign investors. If government policies and macro data (such as consumption and growth) support, domestic investors can maintain the balance.