Indian Stocks Face First Annual Decline in Over a Decade
Foreign investors have sold more than 23 billion dollars in Indian holdings so far this year to seek higher returns in AI-driven global markets. Analysts expect the Nifty 50 to end 2026 with a slight annual loss as domestic retail investment struggles to offset the massive capital outflows.
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India stocks face their first annual decline in over a decade as foreign investors sold $23 billion in holdings so far in 2026. The Nifty 50 has fallen 8.5% this year, underperforming global peers amid record capital outflows. Investors are rotating capital toward AI-driven markets, leaving Indian valuations at 20 times earnings vulnerable to further corrections.
