697 days, no new record high: Sensex hits worst two-year return stretch since 2012. Will this end soon?

Sensex has gone 697 days without a new record high, with 37 percent of trading days in 2026 ending with negative two-year returns, the highest share since 2012. The weakness is attributed to an ongoing Iran war driving Brent crude towards 92-95 dollars per barrel with risks of breaching 100 dollars, a roughly 60 billion dollar FII exodus since the September 2024 peak, and a Super El Nino threatening the weakest monsoon in a decade. India has been labelled Asia's least-preferred stock market by BofA fund managers for the second time this year, though FIIs turned net buyers with 2.5 billion dollars in July, suggesting some pressure has eased.