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While global equity markets are rallying to their fresh highs, the domestic benchmarks seem to be struggling. According to the latest India strategy note by Motilal Oswal Financial Services Ltd (MOFSL), the Nifty has declined 8% from its September 2024 peak, while global markets have rallied 30-150% since India’s market high.<\/p>
While most major global indices have confidently brushed off recent geopolitical anxieties to reclaim or cross their all-time highs following the March 2026 sell-off, the Nifty has remained sluggish, trading roughly 5% below its pre-war levels, it said\u00a0<\/p>
Earnings expectations<\/strong><\/p> MOFSL pointed out that global markets are pricing in 20% to 40% earnings per share (EPS) growth. India, by comparison, is trailing with an EPS growth of only about 18%, noting that “a sustainable earnings growth delivery is critical for reversing the underperformance.” \u00a0\u00a0<\/p> AI Factor<\/strong><\/p> The brokerage also noted that the narrow, concentrated nature of the global AI rally has favored tech-heavy markets like South Korea, Taiwan, and the United States, leaving India on the sidelines.\u00a0<\/p> \u201cIndia\u2019s lower exposure to AI hardware and the narrow, concentrated nature of the global AI rally have limited participation, thereby overstating overall market weakness,\u201d the brokerage said.<\/p> FII outflows<\/strong><\/p> This global AI shift has also had a direct impact on foreign capital flows. \u201cWith AI trade having run for an extended period, any potential unwinding or rotation could redirect FII flows toward structurally strong domestic growth markets like India, setting the stage for a reversal in relative underperformance,\u201d MOFLS said<\/p> Foreign Institutional Investors (FIIs) have been pulling their money out of Indian equities, logging massive net outflows of approximately $21 billion so far in CY 2026, it noted. Domestic Institutional Investors (DIIs) have stepped up, pumping in roughly $33 billion. \u00a0<\/p> However, MOFSL noted the global AI trade has been running hot for a long time, and any cool-down could be India’s gain. \u201cWith AI trade having run for an extended period, any potential unwinding or rotation could redirect FII flows toward structurally strong domestic Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.<\/i><\/p> nifty, indian stock market, south korea stock market, fiis, foreign investors, global stock markets, share market news, artificial intelligence, ai impact, why is Nifty underperforming global markets, nifty vs global markets#Nifty #Sept #high #global #markets #rallied1778309170<\/p> ","protected":false},"excerpt":{"rendered":" While global equity markets are rallying to their fresh highs, the domestic benchmarks seem to be struggling. According to the latest India strategy note by Motilal Oswal Financial Services Ltd (MOFSL), the Nifty has declined 8% from its September 2024 peak, while global markets have rallied 30-150% since India’s market high. While most major global […]<\/p>\n","protected":false},"author":1,"featured_media":7810,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[12907,2695,10313,10317,187,28969,2013,1722,358,2110,28971,28972,22600,113,28968,28970],"class_list":["post-7809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-content-marketing","tag-ai-impact","tag-artificial-intelligence","tag-fiis","tag-foreign-investors","tag-global","tag-global-stock-markets","tag-high","tag-indian-stock-market","tag-markets","tag-nifty","tag-nifty-vs-global-markets","tag-rallied","tag-sept","tag-share-market-news","tag-south-korea-stock-market","tag-why-is-nifty-underperforming-global-markets"],"acf":[],"_links":{"self":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/7809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7809"}],"version-history":[{"count":0,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/7809\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/media\/7810"}],"wp:attachment":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7809"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
growth markets like India, setting the stage for a reversal in relative underperformance,\u201d it said.
\u00a0<\/p> <\/div>