New Delhi, Sept. 1 -- Indian equities have been underperforming this year, even as there is nothing in the fundamentals to justify that. Nothing in the business cycle momentum justifies it either.

What's driving the decline is sentiment and foreign selling- much of it from passive funds forced to sell an underperforming market at precisely the wrong time. But foreign investors are missing the bigger picture - India's macro fundamentals are stronger than ever.

Consider what just happened with the GDP numbers. The market expected a sequential slowdown in the first quarter (Q1FY27) to 7.3%.

Instead, Q4FY26 was revised up to 8.6%, and Q1FY27 came in at 7.8% - and this with oil deliveries severely disrupted through March. Plug the latest nu...