CNBC's "Inside India" segment analyzed that the Indian economy has consistently exceeded expectations over the past year, with a 7.8% growth in the June quarter, prompting institutions like Morgan Stanley and Citi to revise up their economic growth forecasts. However, India's major stock indices, such as the Nifty 50, have performed disappointingly, falling 8% since the beginning of the year, making it one of the worst-performing major global indices. The analysis suggests that this disconnect is due to the high concentration of large-cap indices like the Nifty 50 in financial services and IT companies, failing to adequately reflect the strong economic activity in emerging sectors such as manufacturing, fintech, and consumer tech. In contrast, small and mid-cap stocks have performed significantly better, with the Nifty Midcap 150 index rising 10% over the past year, while the Nifty 50 fell more than 2%.