Nifty 50 down 9% in H1 2026 as oil shock and weak earnings weigh on Indian equities

With the benchmark index shedding nearly 9% in the first half of the year, investors are weighing whether a rebound is possible in H2 or if Middle East-driven energy costs will continue to cap valuations.

By Handelsavisen Newsroom · Automated 2026-06-30 13:17 UTC · 1 min read

The Nifty 50 has lost almost 9% in the first half of 2026, marking a challenging period for Indian equity markets driven by a confluence of geopolitical and fundamental headwinds.

The decline reflects sustained pressure from elevated crude oil prices, which have reached multi-year highs due to escalating tensions in the Middle East, alongside weaker-than-expected corporate earnings across key sectors.

10, down 1.16%. The broader Sensex mirrored this weakness, falling 893 points, or 1.

Market sentiment remained fragile on Tuesday, with the Nifty 50 slipping below the critical 24,000 support level to close at 23,824.10, down 1.16%.

The broader Sensex mirrored this weakness, falling 893 points, or 1.16%, to end at 76,200.68.

The sell-off was broad-based, anchored by heavy losses in energy-sensitive and consumer-facing stocks as investors digested the impact of rising input costs on profit margins.

The primary driver of the first-half slump has been the surge in oil prices, which has strained India’s trade balance and fueled inflationary pressures.