Sensex down 11% in 2026 so far: What's the reason
Business
2026 hasn't been kind to Indian stock markets so far: the Sensex has dropped 11.4% since January, making it the fifth-worst start in the past 47 years.
The main culprits? Ongoing geopolitical tensions and surging oil prices, which are putting pressure on company profits and raising worries about the economy.
Oil prices could determine market direction
Analysts say things could get tougher if oil stays expensive.
Nomura expects a potential 10-15% downside to Nifty 50 FY27 earnings estimates if oil prices remain elevated.
Still, some experts like Ajit Mishra call this slump temporary, and others believe markets will bounce back once oil prices cool off.
In the meantime, investors may need to get used to higher risks and interest rates until things settle down.