New Delhi, July 6 -- Indian stock market benchmark Nifty 50 has delivered zero returns over the last two years. On Friday, 3 July, the index closed at 24,271. On 3 July 2024, it was at 24,286. This is a 0.06% decline in two years.

In fact, the Indian stock market has underperformed most global markets over the past three years.

What explains this poor performance of the domestic market when the country's gross domestic product (GDP) grew by 8.2% in FY24, 7.1% in FY25, and 7.7% in FY26?

Of late, the narrative behind the underperformance of the Indian stock market has been centred around the lack of AI-trade in the country and increased geopolitical and geoeconomic risks emanating from the regional conflicts and US tariffs.

However, bey...