EM is back, India is next: Why the 2025 underperformance is the perfect setup for a 2026 comeback

May 2, 2026

Emerging Markets led global returns in 2025, but India lagged due to outflows and weaker earnings. With valuations correcting and domestic fundamentals strengthening, including policy support and rising retail participation, India is positioned for a potential rebound. Structural drivers suggest the underperformance could set the stage for stronger market performance in 2026.

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