Market’s two-year slump deepens, analysts see room for recovery
The Indian stock market has experienced a two-year slump, with benchmark indices like the Sensex and Nifty50 struggling due to rising oil prices and bond yields. Analysts suggest that while earnings growth has slowed, there is potential for a recovery in large-cap stocks.
Why it matters
The performance of the Indian equity market is a key indicator of the country's economic health and investor sentiment.
Domestic equity market continues to remain under pressure, with little sign of a decisive breakout. Rising crude oil prices and bond yields have added to the selling pressure, overshadowing the country’s strong Q1 GDP growth, with the benchmark BSE Sensex and NSE Nifty50 closing higher in only one of the past seven sessions.Over the past month, the Nifty50 has declined 4%, taking its year-to-date loss to nearly 10%. The correction is not a short-term phenomenon. Barring a brief rebound in December 2025 and early January 2026, the benchmark indices have remained under sustained selling pressure for nearly two years.
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