India sits out the global bull run in the first half of 2026

Indian equities posted their worst first-half performance since 2022, with the Nifty 50 declining 8.7% in H1 2026 amid geopolitical tensions, foreign selling, earnings downgrades and concerns over AI disruption. The BSE IT index plunged a record 30%, while FMCG and automobiles fell 6-10%; power, capital goods and telecom bucked the trend with gains of 17-25%. India still trades at 22.2 times trailing twelve-month earnings, a premium to most peers but cheaper than the US, Japan and Taiwan.