Finance & MarketsHigh Priority (9/10)India

India's Stock Markets Post Worst Fiscal Performance Since 2020 Amid Global Turmoil

India's benchmark indexes recorded their weakest financial-year performance in six years, with Nifty 50 and Sensex falling 5.1% and 7.1% respectively, as foreign investors pulled out a record $19.69 billion.

Key Points

  • Nifty 50 fell 5.1% and Sensex declined 7.1% in fiscal year - worst since 2020
  • Foreign portfolio investors sold record $19.69 billion of Indian equities
  • IT sector saw highest outflows among all sectors
  • TCS, Wipro and Infosys among worst Nifty 50 performers

Full Details

India's benchmark stock indexes experienced their weakest financial-year performance in six years on Monday, battered by geopolitical shocks, U.S. tariffs, and record foreign investor outflows. The Nifty 50 fell about 5.1% while the Sensex declined 7.1% during the fiscal year, marking their worst showing since 2020 when the COVID-19 pandemic triggered a global equity rout. Foreign portfolio investors offloaded a record $19.69 billion worth of Indian equities in the fiscal year, with the information technology sector seeing the highest outflows among all sectors. Tata Consultancy Services, Wipro, and Infosys ranked among the worst Nifty 50 performers during the fiscal year, reflecting the sector's vulnerability to global trade tensions and U.S. policy changes.

Why It Matters

The massive foreign investor exodus signals eroding confidence in India's economic outlook, potentially requiring policy interventions to restore market stability and attract capital flows back into Indian equities.

Sourcereuters.com

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