India stocks lag global markets in 2026: BofA data shows 9.1% decline in USD terms
Indian equities have significantly lagged several major global markets in 2026, with India stocks down 9.1% in US dollar terms so far this year, according to Bank of America. The weakness contrasts with strong gains in the US, Japan and broader emerging markets, while capital flows show investors favouring other markets.
- Aug 22, 2026,
- Updated Aug 22, 2026 11:25 PM IST
Indian equities have emerged as one of the weaker-performing major equity markets in 2026, according to Bank of America’s latest The Flow Show report. The report’s cross-asset performance table shows India equities down 9.1% year-to-date in US dollar terms as of August 19, 2026.
The underperformance stands out when compared with gains across several major markets. US equities have risen 13.3%, while Japan equities have gained 18% and emerging-market equities have advanced 20.6% during the same period. UK and European equities have also delivered positive returns, gaining 12.4% and 12.2%, respectively.
India’s performance also compares poorly with several Asian markets. Japan is up 18%, while Korea and Taiwan have been among the strongest individual equity markets, with gains of 77.6% and 58%, respectively, in the table cited by BofA. China, however, has also remained weak, with Chinese equities down 8.1% in dollar terms.
| Market / Asset | 2026 YTD performance |
|---|---|
| Korea equities | +77.6% |
| Taiwan equities | +58.0% |
| Japan equities | +18.0% |
| Emerging-market equities | +20.6% |
| US equities | +13.3% |
| UK equities | +12.4% |
| Europe equities | +12.2% |
| Gold | +3.4% |
| China equities | -8.1% |
| India equities | -9.1% |
| Oil (WTI) | +49.5% |
| Industrial metals | +13.8% |
Source: BofA Global Investment Strategy/Bloomberg; data as of August 19, 2026.
The broader asset-class picture has been particularly striking. Oil has been the top-performing major asset, with Brent crude up 50.6% and WTI crude up 49.5%, while the broader commodities basket has gained 63.4%. Industrial metals have risen 13.8%, whereas gold has gained a more modest 3.4%.
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BofA’s data also shows that the weakness in Indian equities has been accompanied by continued investor flows away from emerging-market equities. Global equity flows stood at $40.1 billion for the latest week, but emerging markets recorded $0.4 billion of outflows. On a year-to-date basis, India recorded equity outflows of $10.5 billion, compared with strong inflows into the US and Japan.
The divergence is also visible in capital flows. BofA’s data shows that India recorded $10.5 billion of equity outflows year-to-date, while the US attracted $433.6 billion and Japan $21.6 billion. Emerging-market equities as a group saw $45.3 billion of YTD outflows. The latest week also saw $0.4 billion leave EM equities, even as global equity inflows remained strong. This suggests that India’s weak dollar-denominated performance is not simply a function of global risk aversion; investor allocation has also been tilted towards developed markets and select other emerging-market opportunities.
The figures underline a sharp divergence in global equity performance in 2026, with India trailing several major markets even as overall global appetite for equities remains strong.
Indian equities have emerged as one of the weaker-performing major equity markets in 2026, according to Bank of America’s latest The Flow Show report. The report’s cross-asset performance table shows India equities down 9.1% year-to-date in US dollar terms as of August 19, 2026.
The underperformance stands out when compared with gains across several major markets. US equities have risen 13.3%, while Japan equities have gained 18% and emerging-market equities have advanced 20.6% during the same period. UK and European equities have also delivered positive returns, gaining 12.4% and 12.2%, respectively.
India’s performance also compares poorly with several Asian markets. Japan is up 18%, while Korea and Taiwan have been among the strongest individual equity markets, with gains of 77.6% and 58%, respectively, in the table cited by BofA. China, however, has also remained weak, with Chinese equities down 8.1% in dollar terms.
| Market / Asset | 2026 YTD performance |
|---|---|
| Korea equities | +77.6% |
| Taiwan equities | +58.0% |
| Japan equities | +18.0% |
| Emerging-market equities | +20.6% |
| US equities | +13.3% |
| UK equities | +12.4% |
| Europe equities | +12.2% |
| Gold | +3.4% |
| China equities | -8.1% |
| India equities | -9.1% |
| Oil (WTI) | +49.5% |
| Industrial metals | +13.8% |
Source: BofA Global Investment Strategy/Bloomberg; data as of August 19, 2026.
The broader asset-class picture has been particularly striking. Oil has been the top-performing major asset, with Brent crude up 50.6% and WTI crude up 49.5%, while the broader commodities basket has gained 63.4%. Industrial metals have risen 13.8%, whereas gold has gained a more modest 3.4%.
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BofA’s data also shows that the weakness in Indian equities has been accompanied by continued investor flows away from emerging-market equities. Global equity flows stood at $40.1 billion for the latest week, but emerging markets recorded $0.4 billion of outflows. On a year-to-date basis, India recorded equity outflows of $10.5 billion, compared with strong inflows into the US and Japan.
The divergence is also visible in capital flows. BofA’s data shows that India recorded $10.5 billion of equity outflows year-to-date, while the US attracted $433.6 billion and Japan $21.6 billion. Emerging-market equities as a group saw $45.3 billion of YTD outflows. The latest week also saw $0.4 billion leave EM equities, even as global equity inflows remained strong. This suggests that India’s weak dollar-denominated performance is not simply a function of global risk aversion; investor allocation has also been tilted towards developed markets and select other emerging-market opportunities.
The figures underline a sharp divergence in global equity performance in 2026, with India trailing several major markets even as overall global appetite for equities remains strong.