Market Mirage: Why India’s Bulls Are Losing to Asia’s Tigers

Analysts point to stretched valuations, softer corporate earnings, and consumption slowdown as key domestic drags. Global factors, including rising Japanese bond yields and China’s rebound, have further shifted investor preference. While India remains a long-term growth story, near-term sentiment has cooled, pushing benchmarks lower relative to regional competitors.  

Notable updates  
• India’s dollar returns near 10% in 2025, rupee depreciation adds pressure  
• FIIs increased selling in December, rotating into better-performing Asian markets  
• Valuation overhang makes India more vulnerable to earnings disappointments  
• Domestic headwinds: weaker consumption, tariff uncertainties, and softer corporate results  
• Global peers like Japan, China, and South Korea posted stronger rallies, widening the gap  

Major takeaway  
India’s underperformance reflects a mix of global rotation and domestic challenges. Restoring momentum will depend on earnings visibility, consumption recovery, and policy clarity to reassure investors and narrow the gap with Asian peers.  

Sources: LiveMint, Economic Times, India Today