India’s market capitalization has dropped below $4 trillion for the first time in 14 months, losing over $1 trillion from its peak in December 2024. A weakening rupee, foreign investor outflows exceeding $10 billion, and concerns over high valuations have triggered the decline. MidCap and SmallCap indices have fallen over 12-15%, while global markets, including the US and China, have gained year-to-date.
