Indian Nifty 50 posts steepest 8.7% H1 fall since 2022
Business
The first half of 2026 was tough for Indian stocks: Nifty 50 dropped 8.7%, its steepest fall since 2022.
Rising oil prices (thanks to the U.S.-Iran conflict), a weaker rupee, and foreign investors pulling out ₹2.74 trillion all played a part in the slide.
Domestic inflows fail, tech down 30%
Domestic investors tried to soften the blow with record inflows, but it wasn't enough to stop the overall decline.
Tech stocks were especially hard hit (down 30%) as worries about AI disruption grew, while FMCG and auto sectors also slipped.
On the flip side, power and capital goods saw solid gains.
Analysts think IT will stay under pressure until there's more clarity on AI, but see opportunities in banking and infrastructure if global tensions ease up.