India grows at over 7 percent, yet its stock market keeps sliding. Five forces explain the gap. First, foreign investors have withdrawn about $40 billion in two years, and net foreign inflows over a decade are near zero. Second, the rupee is Asia’s worst-performing currency in 2026, touching record lows near 96.96 to the dollar, which spooks overseas funds. Third, crude oil near $100 a barrel hurts India, which imports over 90 percent of its crude. Fourth, policy signals have rattled confidence: the Prime Minister urged lower fuel use and curbs on imports and overseas travel as energy prices pressure reserves. Fifth, valuations stayed rich even as earnings slowed, so the correction has further to run. Domestic investors have cushioned the fall. Mutual fund assets stand near $900 billion, up from $125 billion in 2016, and 150 million Indians now hold stocks or funds. But with jobs soft and inflation high, households feel the pinch as their equity savings shrink.