Sensex Falls to 72,000, Nifty Down 5% in FY26
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- Sensex fell 7% to near 72,000 while Nifty dropped over 5% in FY26, delivering negligible returns over two years after the index had touched ~85,000 twice during the period.
- Foreign institutional investors pulled out Rs 1.8 lakh crore from Indian equities in FY26, with selling accelerating sharply to Rs 1.31 lakh crore in the final quarter alone.
- Nifty Realty and tourism indices plunged 23% each, Nifty IT dropped 21% and the Nifty India Internet Index fell 19%, while even financials failed to cushion the slide — Nifty Financial Services -6%, Nifty Bank -2%.
- Consumption-linked sectors came under heavy pressure, with FMCG down 15% and media down 14%, as elevated interest rates and demand concerns weighed on sentiment.
- The late-FY26 escalation of the Iran-Israel-US conflict triggered a sharp crude oil spike, raising inflation concerns and squeezing corporate margins across India's macro outlook.
- US Federal Reserve rate-cut expectations were pared back significantly, tightening global liquidity conditions and adding to equity market stress.
- Brickwork Ratings projects FY27 as a year of selective opportunities rather than broad-based rallies, with commodities likely to outperform equities and debt markets offering relatively more stability.
Why it matters: Indian investors saw essentially zero returns over two years as FIIs yanked out Rs 1.8 lakh crore and selling hit nearly every sector — financials and consumption included. With crude spiking from West Asia tensions and the Fed pulling back rate-cut expectations, the FY27 setup looks just as unforgiving for anyone betting on a broad rebound.
