India’s Gross Domestic Product (GDP) print for the second quarter of the financial year 2025-26, at 8.2%, points to a full-year GDP growth rate of around 7.5% — making India the fastest-growing large economy in the world. While GDP is hot, Indian stock markets have been cool for a year, with the Nifty50 one-year return at less than 8% — masking a concentration of return in a few large-cap stocks while the rest have fallen or stayed flat. While GDP growth eventually translates into stock-market returns, what we see right now is a mix of factors that has left secondary markets unimpressed by the growth numbers.
