India's share in global market capitalization has decreased to just under 3%, a significant drop from over 4.6% in 2024, primarily due to a sustained bearish trend in domestic equities. Since the beginning of 2026, benchmark Indian equity indices have lost nearly 13%, largely influenced by aggressive selling from foreign portfolio investors (FPIs). In 2025, FPIs reported a record outflow of $18.9 billion (approximately ₹1.7 lakh crore), driven by a weaker rupee and rising inflation, exacerbated by the ongoing West Asian crisis affecting energy imports. Year-to-date, FPIs have sold equities worth $23.1 billion (around ₹2.2 lakh crore) in 2026, with significant selling occurring early in the year. Despite these challenges, India maintains its position as the fifth largest market globally, with a market capitalization of $4.9 trillion as of May 12, 2026, slightly ahead of Taiwan and South Korea. The price-earnings (P/E) ratio for Indian indices stands at approximately 20.6, which is competitive compared to many global indices, although lower than American indices that range between 22 and 38.