India’s economy grew by 7.8% in the June quarter, prompting firms like Morgan Stanley and Citi to raise their forecasts to 7.3% for the fiscal year ending March 2027. Yet the Nifty 50 index has fallen 8% since the start of the year, ranking among the worst performers among major global indices. This disconnect is explained by the heavy concentration of benchmark indexes in financial and IT sectors, which account for roughly 45% of the Nifty 50’s weighting, while economic growth is shifting toward manufacturing, fintech, and consumer technology. Mid-cap company earnings surged 31% in the second quarter compared with just 11% for the Nifty 50, and the Nifty Midcap 150 index gained 10% over the past year while the Nifty 50 lost more than 2%.
Source: Read the original article
