From 100,000 hype to 2-year low: Sensex delivered zero returns in last two years
Why it matters: Indian equities saw Rs 1.8 lakh crore in FII outflows in FY26, leading to zero Sensex returns over two years.
- Sensex fell 7% to near 72,000 in FY26, while Nifty dropped over 5%, marking a two-year low despite hitting 85,000 twice.
- Foreign institutional investors (FIIs) pulled out a significant Rs 1.8 lakh crore from Indian equities in FY26, with Rs 1.31 lakh crore withdrawn in the final quarter alone.
- Geopolitical tensions from the Iran-Israel-US conflict escalated crude oil prices, worsening India’s macro outlook and raising inflation concerns.
- Nifty IT Index dropped 21%, Nifty India Internet Index fell 19%, and Realty and tourism sectors plunged 23% each due to global slowdown concerns and higher interest rates.
- Brickwork Ratings projects FY27 to offer selective opportunities, with commodities potentially outperforming and debt markets providing more stability, while equities face continued headwinds.
The Sensex delivered zero returns over the past two years, plummeting 7% to near 72,000 in FY26, a stark contrast to earlier 100,000-point hype. This downturn was fueled by persistent foreign outflows totaling Rs 1.8 lakh crore, tariff uncertainties, weak corporate earnings, and escalating geopolitical tensions in West Asia.
