New Delhi, Dec. 25 -- After displaying sharp outperformance over the last few years, the Indian stock market has taken a back foot in 2025. The returns offered by major global peers have eclipsed Sensex's performance as the index remained in consolidation mode amid several headwinds like steep tariffs, record FII outflows and fading earnings growth.

The extent of India's underperformance is such that it's also lagged its neighbour Pakistan, whose stock market has not only given high double-digit returns but also remains one of the top-performing global markets.

Sensex touched a record high this year. Yet, this feat was achieved after a gap of 14 months in November this year. The index has risen almost 9%, as the macro setup remained pos...