Indian stocks: Cheaper than the US, with big growth ahead

Business Jan 02, 2026

Right now, Indian stocks are priced lower than their US counterparts based on key market metrics.
With the Nifty 50 projected to climb 9-12% by 2026, there's a real sense of opportunity for investors looking at India's growing economy.

Why does this matter?

India's stock market is expected to see strong earnings growth—10% in FY26 and 16% overall (14% for large caps) in FY27.
Yet, only about 1 in 10 Indians invest in the markets, so there's a lot of untapped potential.
Factors like falling bond yields, hopes for a US-India trade deal, and more foreign investment could make Indian stocks even more attractive going forward.