
India has regained its position among the world's top five equity markets by market capitalization, reflecting resilience despite global volatility. While Indian equities have underperformed several global peers over the past two years, recent trends suggest improving investor sentiment and easing foreign selling. Gaurav Sharma, Associate VP & Head of Research, Globe Capital, believes India's diversified market structure, policy-driven reforms, growing semiconductor and defence ecosystems, and focus on alternative energy provide a strong long-term foundation. He expects inflation to moderate in the coming months, supporting corporate earnings and valuations, which could help Indian equities outperform global peers in the second half of 2026.