India's equity market experienced modest performance in 2025, lagging behind emerging market peers after a five-year outperformance period, according to the RBI's Financial Stability Report. While Indian equities saw strong gains from 2020-2024, 2025 saw EM equities rise sharply, outperforming India. Factors cited for this shift include tepid corporate earnings, slower GDP growth, higher valuations, foreign portfolio investor outflows, and rupee depreciation. Despite this, Indian equities showed resilience with subdued market volatility compared to global peers.