New Delhi, March 4 -- Indian stock market continued to underperform global indices with Nifty 50 closing in red for a fifth consecutive month in February 2025, the first in about the last three decades. Increasing trade war risks over the global economy, FPIs outflows and weak corporate earnings led to the subdued performance in Indian equities.

However, India still remains the world's fastest-growing major economy. Kotak Institutional Equities sees a reasonably solid economic outlook for FY26 with strong GDP growth, under controlled inflation and an improved fiscal outlook.

"Despite the recent correction, Nifty 50 is trading above the historical average forward PE. In our view, investors need to adopt a judicious approach to add select...