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Sensex Sees Worst First-Half Drop Since Pandemic Era

This 'Insights' story delves into the significant downturn experienced by the Indian stock market in the first half of 2026. The benchmark Sensex recorded its steepest first-half fall since the pandemic, plummeting by 10.3%. Despite substantial outflows from Foreign Portfolio Investors (FPIs) amounting to nearly ₹2.74 trillion, driven by geopolitical concerns and subdued corporate earnings, the equity market showed resilience. Notably, small- and mid-cap indices managed to outperform the broader market, indicating a degree of domestic investor strength in cushioning FPI-driven volatility. This analysis examines the impact of global economic pressures and regional crises on the Indian equity market, highlighting the rupee's performance and overall market volatility. It provides a nuanced perspective beyond the headline numbers, crucial for understanding the Indian economy and investment landscape.

Sensex Worst First-Half Fall Since Pandemic | Lumic | Lumic