The Indian stock market is experiencing severe turmoil, with the Sensex dropping 3,000 points and smallcaps in a bear market, as FIIs withdraw over Rs 1 lakh crore in 2025. Analysts predict a potential recovery in FY26, driven by rising GDP growth, despite ongoing earnings downgrades and high valuations across sectors. Long-term investors may find opportunities as the market stabilizes, with expectations of a shift towards discretionary consumption.
about Indian Stock Market Faces Turmoil Amid FII Withdrawals and Earnings DowngradesSeshadri Sen
0 posts last weekIndian Stock Markets Face Severe Decline Amid Foreign Investor Withdrawals
Indian stock markets are facing a severe downturn, with the BSE Sensex dropping 3,000 points over nine sessions, largely due to Rs 1 lakh crore withdrawn by foreign institutional investors in 2025. Smallcap and microcap segments are particularly hard-hit, with declines up to 42% for some Nifty components. Experts predict continued market weakness, citing high valuations and potential earnings reductions, although a recovery may begin in Q1 FY26 as global tensions ease and consumption demand stabilizes.
about Indian Stock Markets Face Severe Decline Amid Foreign Investor Withdrawals