New Delhi, Aug. 26 -- The Independence Day weekend brought cheer for investors. The Prime Minister announced potentially game-changing GST reforms, S&P upgraded India's sovereign rating after 17 years, and the US President hinted at rolling back tariffs on Russian oil. While global cues were already priced in, the GST and S&P moves gave markets an extra push.

The Nifty 50 index opened over 300 points higher before paring gains, but sentiment has remained buoyant since. To be sure, Indian equities have tripled investor wealth since the pandemic lows-delivering a striking 25% CAGR since April 2020.

Yet, compared with a long-term CAGR of 12% since 1999, the past five years look like an exceptional run. A cooling-off phase was inevitable, a...