India’s stock market has been performing below global markets for three years in a row, with 2026 marking the third consecutive year of underperformance. Historically, however, India’s weaker performance periods rarely lasted more than two years. According to YES Securities’ latest strategy note, there are good chances that the market could bounce back soon.
The report looked at long-term data going back to the 1990s and found that India’s periods of lagging behind global markets have usually been cyclical. This means they happen because of temporary economic conditions rather than permanent problems in the market.
In the past, phases of lower returns were often followed by sharp recoveries. These rebounds occurred when the economy improved, corporate earnings grew, or global investment and liquidity conditions became favorable.
YES Securities advised investors to see the current underperformance in a wider perspective. Based on historical trends, the report suggests that India’s markets could recover if the economy strengthens, earnings improve, and macroeconomic factors support growth in the coming months.
The overall message is that India’s stock market underperformance may be temporary, and investors could benefit from a potential rebound in the near future.