India's Market Cap Growth Slowest in 3 Years Amid Global Surge

• India's market capitalization rose just 2.3% in 2025, its slowest pace in three years, making it the weakest among top 10 global equity markets.
• Global market cap surged 22% to $151 trillion, with Canada (36%), China (34%), and Taiwan (31%) leading strong gains.
• Foreign outflows, stretched valuations, softer earnings, global headwinds, and limited AI theme exposure weighed on India's performance.
• Despite slow mcap growth, Sensex and Nifty traded near record highs, driven by strong domestic inflows and resilient macro indicators.
• Near-term foreign flows are cautious, but structural domestic inflows are expected to continue, supporting long-term equity participation.

Why It Matters: India saw its slowest market cap rise in three years in 2025, contrasting a strong global surge.