Indian Stocks Face Worst 9-Month Slump in 15 Years

Indian stock market benchmarks Sensex and Nifty are heading for their worst first-nine-month performance in 15 years, with Sensex down 15 percent and Nifty down 13 percent in calendar year 2026. Foreign portfolio investors pulled out Rs 2.50 trillion from Indian equities during this period, driven by geopolitical tensions, rising crude oil prices, firming bond yields, and an unfavorable rupee-dollar equation. Domestic institutional investors pumped in Rs 6.28 trillion, helping mid-cap and small-cap indices outperform benchmarks. The IT sector was the top wealth destructor, with the Nifty IT index plunging 27 percent, followed by FMCG down 19 percent. However, pharmaceuticals, healthcare, metals, and capital goods sectors rallied 13 to 19 percent. Analysts expect foreign investor sentiment to remain data-sensitive, with easing crude and stable US yields potentially encouraging re-engagement.