From the dawn of 2026, Indian stock markets have erased over 4 percent of their value, hammered by massive FPI withdrawals totaling Rs 36,500 crore. This week’s meltdown underscored the fragility, as indices plummeted amid domestic and global pressures.
Nifty 50 ended the week down 2.51 percent at 25,048, with a final-session drop of 0.95 percent. Sensex mirrored the pain, closing at 81,537 after shedding 769 points or 0.94 percent on Friday, for a weekly decline of 2.43 percent.
No sector escaped unscathed. Realty led the bloodbath with an 11.33 percent plunge, followed by steep falls in consumer durables, telecom, and discretionary over 5 percent. Pressure mounted heaviest on small and midcaps: Nifty Midcap 100 fell 4.58 percent, Smallcap 100 5.81 percent. Bank Nifty’s breach of 58,800 has sparked bearish alerts.
Profit-taking ignited the selloff, but FPI dumping and U.S. tariff policy fears accelerated it. Global markets shuddered from geopolitical strains, including U.S. rhetoric on tariffs and Greenland. Surging bond yields and Supreme Court tariff case reviews stifled investor boldness.
Positive quarterly updates from some IT and bank stocks offered fleeting relief, quickly erased by subpar results from others. Rupee’s slide toward 92 per dollar stokes inflation worries.
Eyes are on Budget 2026 and Fed moves. Short-covering could spark a tactical rally beforehand, per experts. True revival demands easing global tensions, solid earnings, and budget confidence-boosters.