India’s Stocks Are Losing Ground to Global Markets — Is Tax Friction Becoming a Capital-Allocation Problem?

• India’s stock market is underperforming global markets, with foreign investor outflows adding pressure.
• Equity investors face 20% STCG and 12.5% LTCG, with a ₹1.25 lakh exemption.
• Crypto faces a 30% VDA tax and an eligible 1% TDS, creating different after-tax returns. 

The Indian stock market is now struggling to keep pace with global markets. As investors start looking for possible reasons for this gap, factors like taxation, rupee weakness, valuations, earnings, oil prices, and foreign flows come into focus. This has led to a closer look at the costs investors face when putting money into Indian assets.

India’s Relative Market Performance Has Hit a New Low

In 2026, India’s stock market has been facing increasing pressure. As of September 10, the MSCI India Total Return Index was down 5.27% year-to-date in local currency terms. The MSCI World had gaine…

Read The Full Article India’s Stocks Are Losing Ground to Global Markets — Is Tax Friction Becoming a Capital-Allocation Problem? On Coin Edition.