Pulse of the Street: FPI exits, weak earnings leave India the worst global performer

Subscribe to enjoy similar stories. Indian equities ended the week battered and bruised, as sustained foreign portfolio investor (FPI) outflows, weakening earnings momentum and pre-budget jitters combined to drag benchmark indices sharply lower. With the Nifty 50 and BSE Sensex ending down about 2.5% over the week, India stood out as the worst-performing major market in this period.

Alongside, the Nifty 50 slipped below the crucial support level of 25,100, closing the week at 25,048.65. This leaves the index exposed to a possible slide below 25,000, as sentiments are typically fragile ahead of the Union Budget, said Vikas Gupta, chief executive officer (CEO) and chief investment strategist at Omniscience Capital. The last time the Nifty 50 closed below that level was on 3 October 2025, at 24,894.25.

Weak December-quarter earnings could further keep markets under pressure, experts said. A Mint analysis of 189 early results shows corporate profits hit their weakest point in at least three years, despite a notable acceleration in top-line growth. Analysts expect markets to stay cautious in the coming week as investors weigh the Fed’s interest rate outlook against the upcoming Union Budget.

Rising crude prices and the rupee’s fall to a record low of 91.95 against the US dollar may also add pressure, as concerns grow that India has limited policy headroom left to support growth. With earnings confidence waning and global volatility rising, all sectors ended the week in the red. Realty stocks bore the brunt of the sell-off, dropping around 11% on concerns over execution delays and weaker sales expectations, experts said.