Emerging Markets Outpace the Magnificent Seven as Nifty Falls 13.06% in 2026

Mumbai | 30 September 2026 

The Magnificent Seven are seven large US technology companies: Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Nvidia and Tesla. In 2026, emerging-market shares have outperformed them. The MSCI Emerging Markets Index, which tracks 1,178 stocks across 24 countries, returned 24.08% in US dollars from January to August, including dividends. 

How Much Have Emerging Markets Gained in 2026? 

Emerging markets have outperformed developed markets this year. The MSCI World Index, which tracks developed markets, returned 13.10% from January to August. The MSCI All Country World Index (ACWI), which covers both developed and emerging markets, returned 14.31%. Emerging markets were also ahead in 2025. 

Returns are in US dollars and include dividends. 

How Do the Magnificent Seven Compare With Emerging Markets? 

By 31 August, the date of the latest MSCI figures, the MSCI Emerging Markets Index had returned more than any of the seven shares. Nvidia came closest, with a gain of 18.38%. Two of the seven, Meta Platforms and Tesla, were down for the year at that point. 

The MSCI figure is in US dollars and includes dividends. Share figures show price changes only. 

Over the same period, the S&P 500, the main index of large US companies, rose 12.28%. The Russell 2000 Value Index, which tracks smaller US companies whose shares are priced low compared with the value of their assets, rose 21.90%, also more than any of the seven. 

By 29 September, Nvidia (+21.83%) and Apple (+21.17%) led the seven for the year, and Tesla (-21.54%) was the only one still down. Meta Platforms rose 29.08% between 31 August and 29 September, turning a loss for the year into a gain. 

Which Markets Carry the Most Weight in the MSCI Emerging Markets Index? 

On 31 August, Taiwan and South Korea were the two largest markets in the index. Three chipmakers from these markets, Taiwan Semiconductor Manufacturing, Samsung Electronics and SK Hynix, together made up 28.71% of the index. South Korea’s Kospi rose 63.04% and Taiwan’s Taiex rose 64.45% in 2026 up to 29 September, in their own currencies. 

Why Has India Lagged in 2026? 

Rising oil prices and higher bond yields have reduced the appeal of Indian shares. Foreign investors have also moved money towards South Korea and Taiwan, which have many large companies linked to artificial intelligence. 

The Nifty 50 fell 13.06% and the BSE Sensex fell 14.89% in 2026 up to 29 September. Between 31 August and 29 September, the Nifty 50 lost 5.67% and the Sensex lost 5.75%. Foreign portfolio investors (FPIs) have been selling Indian shares, according to National Securities Depository Limited (NSDL) data. 

• FPIs have sold ₹25,662 crore (US$2.7 billion) of Indian shares so far in September. This is their highest monthly outflow in six months. 

• The selling ended two straight months of buying. 

• FPI outflows for 2026 reached US$26.75 billion as of 29 September. 

How Do Oil Prices, Bond Yields and the Rupee Affect Foreign Investors? 

India is a major crude oil importer. Higher oil prices widen its current account deficit, which is the gap between the money India pays abroad and the money it earns from abroad. They also raise inflation risks and put pressure on the rupee. 

• A weaker rupee cuts the returns foreign investors earn in US dollars, even when Indian shares do well in rupee terms. 

• Higher oil prices can squeeze company profit margins, especially in industries that use a lot of fuel. 

• Higher oil prices can also make the Reserve Bank of India’s policy decisions harder. 

• Higher US government bond yields let investors earn more from low-risk US bonds, which makes emerging-market shares less attractive. 

• Higher interest rates also raise borrowing costs and draw investors towards US dollar assets. 

US Federal Reserve commentary has leaned towards higher interest rates, and US economic data has been stronger than expected. 

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