India's GDP is booming, but stock market is crashing: What's going wrong?

India's GDP has surpassed estimates, clocking a 7.8% growth. The World Bank is betting on an even stronger year than it previously expected. Yet, Dalal Street is bleeding.So what's happening? Why is the stock market crashing when the economy appears to be doing so well?Thursday brought another bruising session for Dalal Street, with benchmark indices falling more than 1% and investors losing a whopping Rs 12 lakh crore.BSE Sensex tumbled over 1,100 points, while NSE Nifty50 slipped near the 22,200 mark. The sell-off comes soon after the stock market posted its worst losing streak in 25 years, clocking an eighth consecutive weekly decline last week.Since the onset of 2026, Sensex has tumbled nearly 15% while Nifty50 is almost 13% down.(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();The contrast looks even starker against global peers.South Korea's Kospi has soared 63%, despite its economy being expected to grow just 1.9%.