In FY26, Indian investors experienced a significant performance gap between domestic and US equities. The Nifty50 index declined by 5.05%, while the S&P 500 achieved a remarkable 28.09% return in rupee terms, creating a 33 percentage point disparity. This divergence was largely influenced by a 10.6% depreciation of the Indian rupee against the US dollar, enhancing returns for those holding US assets. For instance, the S&P 500's INR-adjusted return was 28.07%, and the Nasdaq Composite surged by 34.3%. Over a 15-year period, a ₹1 lakh investment in the S&P 500 would have grown to ₹10.44 lakh, compared to ₹3.83 lakh in the Nifty 50. Despite the strong performance of US markets, they faced volatility due to geopolitical concerns, particularly the Iran conflict. The findings underscore the importance of global diversification for Indian investors, allowing them to mitigate risks associated with domestic market fluctuations and leverage currency movements as a natural hedge.