Nifty 50 slipped 13.5% year‑to‑date, closing at 22,620.5 on September 30, 2026, after a 25,810.9 peak in September 2024. The benchmark has shed 12.4% over two years, marking the steepest slide among major indices since early 2024.
By contrast, KOSPI surged 58.7%, Nikkei 28.8%, Ibovespa 14.5%, and S&P 500 11.8% YTD. Even the traditionally volatile Chinese market lost less than 5%, underscoring the depth of India’s pain.
The drop coincides with a historic outflow of US$15.1bn from Indian equities in Q1FY27, driving foreign ownership in the Nifty 50 to a 21.1% 14.5‑year low. Domestic institutional investors have stepped up, filling the void but also tightening the domestic exposure.
This ownership shift means household portfolios, mutual funds, and pension plans are now more sensitive to market swings. Gains during rallies stay at home, but so does the downside when the index trembles.
Looking ahead, analysts see a cautious rebound as global bond yields normalize and inflation expectations ease. Earnings season will be a litmus test; RBI’s policy stance and potential stimulus could tilt the balance in the coming months.