India’s markets have strong domestic cushion, but global risks loom: Sebi
The Securities and Exchange Board of India (Sebi) reports that while India's domestic economy remains resilient, global risks like Middle East conflicts and volatile capital flows threaten the 2026-27 outlook. Despite a challenging previous year, domestic institutional investment has provided a necessary cushion for the markets.
Why it matters
India's economic performance is a key indicator for emerging markets, and these findings highlight the vulnerability of domestic growth to global geopolitical instability.
India’s economic momentum is set to have domestic strength on its side in 2026-27, but global risks may keep the pressure on.In its annual report 2025-26, the Securities and Exchange Board of India (Sebi) said that resilient economic fundamentals are expected to support financial markets, while geopolitical uncertainty, high commodity prices and volatile foreign capital flows could continue to weigh on the outlook,Sebi’s assessment comes after a challenging year for Indian equities. The Nifty 50 and broader indices declined by around 14% in US dollar terms during 2025-26, as sustained foreign portfolio investor (FPI) selling, rupee depreciation, valuation concerns and slower earnings growth weighed on the market.
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