Benchmark Indian indices have declined over 4 percent since January 2026, driven by FPI sales exceeding Rs 36,500 crore. The week’s over 2.5 percent drop highlighted vulnerabilities to profit-booking, foreign exits, and escalating global uncertainties.
All sectoral gauges flashed red. Realty tanked 11.33 percent—the worst performer—while consumer durables, telecom, and discretionary shed more than 5 percent. Nifty closed at 25,048 (down 2.51 percent weekly, 0.95 percent daily), Sensex at 81,537 (2.43 percent weekly loss, 769-point or 0.94 percent Friday fall).
Mid and smallcaps suffered disproportionately: Nifty Midcap 100 -4.58 percent, Smallcap 100 -5.81 percent. Bank Nifty dipping under 58,800 support levels amplifies downside risks.
Initial gains from upbeat IT/banking earnings evaporated against a backdrop of disappointing corporate results. U.S.-centric worries dominated: tariff policies, Greenland statements, rising bond yields, and Supreme Court tariff litigation bred caution globally, spilling into India.
Rupee weakening to ~92/$ heightens import and inflation pressures. Investors monitor Budget 2026 and Fed rate paths closely.
Experts predict a brief pre-budget uptick from unwinding FPI shorts, but enduring bullishness awaits global thaw, stronger profits, and fiscal positives.