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Nifty 50 slides 2% in a year as earnings slow and foreign outflows bite
Foreign investors withdrew nearly $19.7 billion from Indian equities over FY26, while domestic SIP inflows helped cushion volatility.
India’s Nifty 50 has posted negative returns over the past year, down 2% since last Independence Day 2026 to August 2026, with the decline linked to geopolitical uncertainty, foreign capital outflows, and a mismatch between earnings and valuations, according to LiveMint Markets.
LiveMint Markets cited large-cap weakness across multiple index constituents, including ITC, HDFC Life Insurance, HDFC Bank, Wipro, Jio Financial, and TCS, which have fallen 22% to 32% over the same period. At the same time, several names have outperformed sharply, with Shriram Finance, Hindalco Industries, Titan Company, Bajaj Auto, and Eicher Motors rising 40% to 80%.
Analysts said the picture reflects earnings moderation rather than any structural deterioration in India’s growth outlook. LiveMint Markets reported that after a strong post-COVID earnings rebound, profit growth cooled as margin expansion normalized, while valuations remain elevated versus emerging-market peers.
The outlet also pointed to foreign flows as a key pressure point, noting that FY26 saw significant foreign portfolio investor selling, with withdrawals of nearly $19.7 billion from Indian equities. It added that domestic liquidity has provided support through SIP inflows and domestic institutional participation, even as crude oil volatility, geopolitical risk, and US interest-rate uncertainty continue to weigh on sentiment.
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