Inside India newsletter: India's economic growth is smashing forecasts, but its biggest stocks aren't feeling the love

* India's Q1 GDP hit 7.8% but Nifty 50 lags global peers. * Large-cap indices miss manufacturing and mid-cap gains. * Mid-caps outperform with 31% earnings growth vs Nifty 50's 11%. India's June-quarter GDP rose 7.8%, beating forecasts and prompting Morgan Stanley and Citi to lift FY27 growth estimates to 7.3%. Yet the Nifty 50, down 8% YTD, continues to lag. The benchmark is overweight financials and IT-sectors facing margin pressure-while mid- and small-caps capture the manufacturing and consumer-tech boom. Dixon Technologies and Amber Enterprises, both outside the index, are up 20% and 16% YTD. Mid-cap earnings grew 31% YoY versus 11% for Nifty 50 names; their share of total capex has risen to 20% from 14%. Over the past year, the Nifty Midcap 150 index gained 10% while the Nifty 50 slipped 2%.