1 / 9The financial year 2026 is set to be the worst year for market returns in a decade, excluding the COVID-hit year. However, history is offering a silver lining — in the last 22 years, markets have never declined for two consecutive financial years, suggesting a potential rebound ahead.
2 / 9Biggest fall in 10 years (Ex-COVID) | The market is set to post negative returns after two years. Nifty is down nearly 5% in FY26, erasing all gains of FY25. Over 50% of the Nifty stocks are still in the green for the fiscal. As many as 15 stocks have given double-digit returns, while 16% have fallen over 10%.
3 / 9The laggards | The Nifty Realty, IT and FMCG indices are the laggards. Nifty Realty has declined 21%, IT index is down 20% and FMCG is down 13% this fiscal.
4 / 9The winners | Despite the recent sell-off, PSU Banks have led the way this fiscal, followed by metal and auto stocks. The Nifty PSU Bank index surged 32% this fiscal, while Nifty Metal is up 23%, while the Nifty Auto index is up 14%.
5 / 9Stocks that won in FY26 | Shriram Finance, BEL, SBI, Titan and Eicher Motors are the top gainers in this fiscal, with their shares rising between 27% to 38%.
6 / 9Nifty laggards | Trent witnessed the biggest drop among Nifty stocks, declining 36%. TCS closely followed as it declined 34%. Wipro, IndiGo and Adani Enterprises are the remaining laggards on the index, declining between 20% – 27% this fiscal.
7 / 9Midcap gainers | Delhivery emerged as the top performer within the broader markets this fiscal, with shares surging as much 68%. Yet, the stock remains well below its issue price of ₹487. Delhivery was followed by AB Capital and AU Small Finance Bank, with shares rising 65% each. L&T Financial Services and Indian Bank also gained 64% each this fiscal.
8 / 9Midcap losers | KPIT Tech is the top midcap loser, declining 50% this fiscal, followed by ACC, Jubilant Foodworks, Tata Chemicals and Coforge, with losses this fiscal ranging between 30%-32%.
9 / 9What’s next | After 2003, the market has not delivered negative returns for two consecutive financial years. Historical data suggests a big reversal may be on the cards for markets after falling in FY26. In 2003, Nifty declined 13%, but in 2004 in gained 81%. Similarly, in 2009, the index was down 21% but it recovered 74% in the following fiscal. While the index declined 9% each in 2012 and 2016, it recovered just 7% and 19% in the following fiscals, respectively. However, post the 26% drop post-COVID in 2020, Nifty recovered 71% in 2021. The index has fallen 5% in 2026 and it now remains to be seen what course it will take in FY27.
