India’s Q2 2026 GDP expanded 7.8%, beating the World Bank’s 2.9% projection and sending a hopeful note through the capital markets. Yet the Nifty 50 slipped 1.2% on Thursday, its eighth consecutive weekly drop and the worst losing streak in 25 years, wiping out Rs 12 lakh crore in market value.
The divergence stems from the fact that GDP reflects past activity while the equity market prices future expectations. A mix of foreign portfolio investor outflows, a 2.8‑point depreciation in the rupee, a 5‑percentage‑point rise in US Treasury yields, and a 1.5‑log rise in WTI crude has weighed on investor sentiment.
Jyoti Prakash Gadia, managing director of Resurgent India Limited, said, "The GDP is based on actual economic activity, whereas market pricing depends on projected profitability and perceived risks. Thus, a strong growth figure can coexist with falling share prices if investors foresee headwinds."
Shweta Rajani, associate director at Anand Rathi Wealth Limited, told TOI that "the current correction is more about short‑term geopolitical uncertainty than a shift in India’s long‑term growth outlook. Domestic institutional investors are buying on weak days, signalling a long‑term view that could cushion the downturn."
For a family in Kolkata, the fall has meant a pause in their investment plan, as the father, a small‑scale trader, watched his portfolio lose 3% in a day. Meanwhile, the RBI’s policy committee is slated to meet on 12 November, and its decision on interest rates is expected to be the next decisive factor for the market.