New Delhi, Aug. 13 -- The Indian stock market has been drifting lower since the start of July, with frontline indices hitting fresh lows over the last six weeks and tumbling to multi-month lows. This selling has largely been confined to the domestic market, as Asian, US, and UK stocks have been hitting new highs, with the S&P 500 and Nasdaq recording multiple peaks and select developing market indices reaching multi-year highs.

The Nifty has lost 3.6% over the last one and a half months and currently trades at a three-month low. In contrast, China's Shanghai Composite Index has jumped 7% in the same period, touching its highest level since November 2024 in today's session.

Other major Asian exchanges have also advanced, with Hong Kong's...