New Delhi, April 28 -- Two years ago, India, along with the US, was the best-performing stock market in the world. India held this record over a twenty-year period.

Now, India is one of the worst-performing stock markets in the world, despite being the fastest-growing large economy over the last five years.

Sustained FII selling is often touted as the principal reason for India's underperformance.

The sustained FII selling, which began in 2025 and continues in 2026, has contributed to the weakness in the market.

More importantly, the sustained FII selling and capital outflows have weakened the currency, which, in turn, has further accelerated the FII selling.

Of late, this has become a vicious cycle: outflows depreciating the rupee a...