The Nifty 50 and broader indices declined by around 14% in US dollar terms during 2025-26. Sustained foreign portfolio investor (FPI) selling, rupee depreciation, valuation concerns and slower earnings growth affected Indian markets. The Middle East conflict added to the pressure.
Strong investment flows from domestic institutional investors, particularly mutual funds, helped offset some of the pressure from foreign investors. said the Indian economy remained resilient during the year, supported by domestic demand, government capital expenditure and the services sector.
Real GDP growth was estimated at 7.7% in 2025-26, compared with 7.1% in the previous year. Private consumption and investment accounted for 56.7% and 31.9% of nominal GDP, respectively.
