Nifty 50 Falls 14.35% Over Two Years as Global Tech-Heavy Peers Surge, Angel One Data Shows

A comparative performance study released by domestic brokerage firm Angel One highlights a stark period of divergence between Dalal Street and global equities between late September 2024 and early October 2026.

According to data compiled from Investing.com and Google Finance tracking the period from September 27, 2024, to October 2, 2026, an investor who committed ₹10 lakh to the benchmark Nifty 50 index saw their capital decline by 14.35%, reducing the value of the holding to ₹8,56,500. By contrast, every other major international benchmark evaluated generated positive returns, with semiconductor-heavy Asian powerhouses leading global wealth creation.

How ₹10 Lakh Performed Across Global Benchmarks

The analysis evaluated a lump-sum investment of ₹10 lakh deployed across six major national indices over the two-year window (excluding foreign exchange movements and rupee depreciation):

• South Korea (KOSPI): Generated a 171.30% return, expanding ₹10 lakh into ₹27,13,000.
• Taiwan (TAIEX): Advanced 116.80%, turning ₹10 lakh into ₹21,68,000.
• Japan (Nikkei 225): Rose 78.50%, lifting ₹10 lakh to ₹17,85,000.
• United States (S&P 500): Gained 33.00%, raising ₹10 lakh to ₹13,30,000.
• China (CSI 300): Posted a 12.10% increase, converting ₹10 lakh into ₹11,21,000.
• India (Nifty 50): Contracted 14.35%, reducing ₹10 lakh to ₹8,56,500.

The Asian Semiconductor Boom vs. India’s Valuation Correction

The timing of the study corresponds with the historic peak of the Indian benchmark. On September 27, 2024, the Nifty 50 touched an all-time record closing high near 26,277, capping a multi-year domestic equity bull run. Over the subsequent 24 months, Indian equities contended with elevated valuation multiples, slowing corporate earnings momentum in key domestic consumption and IT segments, and massive foreign portfolio investor (FPI) outflows. As high-frequency economic indicators normalized and domestic primary markets absorbed substantial liquidity, benchmark indices entered a sustained consolidation phase.

Conversely, regional markets in East Asia experienced a supercharged capital rotation driven by artificial intelligence hardware demand and structural corporate governance enhancements.

Key Drivers Behind the Global Divergence:

• The AI Hardware Supercycle: Taiwan's TAIEX and South Korea's KOSPI benefited from heavy index weightings in global semiconductor and memory leaders, such as TSMC and SK Hynix, as global hyperscalers expanded infrastructure spending.
• Japanese Corporate Reforms: The Nikkei 225 sustained strong institutional buying amid corporate governance revamps by the Tokyo Stock Exchange and supportive export valuations.
• Policy Stimulus in China: The CSI 300 rebounded from multi-year troughs following major central bank and fiscal support measures implemented in late 2024.
• Valuation Rebalancing: Global asset allocators actively rotated capital out of richly valued emerging markets like India toward cheaper cyclical alternatives across the Asia-Pacific region.

Key Lessons for Domestic Investors

For Indian market participants, the performance comparison illustrates the inherent risks of pure home bias. While Indian domestic equities have historically generated superior long-term compounded growth over rolling decade periods, cyclical drawdowns can be painful when entered at historical market peaks.

Furthermore, because Angel One's data excludes the effects of rupee depreciation against the US dollar and other major reserve currencies, the real-terms outperformance of globally diversified portfolios would be even wider for an Indian investor using liberalised remittance or feeder fund structures. Financial planners suggest that while India remains a compelling structural domestic growth story, allocating a prudent portion of capital to global technology, advanced manufacturing, and broad developed markets can smooth drawdowns during prolonged domestic consolidation phases.

Tags: Nifty 50 KOSPI TAIEX Nikkei 225 S&P 500 Angel One