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Nifty 50 drops 13% over two years, prompting calls for diversification

LiveMint says geopolitical risk, US tariff uncertainty, foreign outflows, and a gap between earnings and valuations have weighed on Indian stocks, while higher US bond yields have pressured emerging markets like India.

Reported · Written up by our desk · Emerging Markets

India’s Nifty 50 is down 13% over the past two years, underscoring pressure on local equities and raising questions about whether investors should diversify into global stocks, according to LiveMint Markets.

LiveMint points to a move from an all time high level in January, followed by weakness, as well as “increased geopolitical risks,” US tariff related uncertainties, and foreign capital outflows, saying the lack of an “AI play” in India has also been a factor.

The outlet also highlights higher oil prices and what it describes as an earnings valuation mismatch as key headwinds. It further cites rising US bond yields, tied to growing expectations of additional rate hikes by the US Fed, as a headwind for emerging markets such as India.

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