Worst market year in FY26 as foreign selling and rupee drag shake confidence

Foreign investors dumped a record amount — and the year worsened

FY26 turned out to be India’s worst year for stocks since the pandemic, with foreign investors selling a record amount of Indian shares. Trade tariffs and regional conflicts hit global sentiment, while the rupee declined sharply. Even so, the editorial argues India’s fundamentals stay resilient, and recovery may depend on stabilising energy prices.