India's stock market experienced its most significant underperformance compared to Asian peers since 1998, as foreign fund outflows reached a record $17.9 billion in the past year. This decline was exacerbated by a weakening rupee and concerns over valuations, earnings growth, and trade relations. Despite these challenges, Indian equities achieved a record tenth consecutive year of gains, largely supported by substantial domestic institutional investment. Analysts anticipate potential future gains if corporate earnings improve and domestic demand policies are effective, though near-term uncertainty persists.