As we enter the final three months of the year, the benchmark Nifty index is staring at its worst calendar-year performance in 15 years. This is a sharp reversal for a market that until recently commanded some of the richest valuations in the world and appeared almost immune to global shocks. The index is down nearly 13% so far in 2026. If that decline holds through December, it would mark the Nifty's weakest calendar year since 2011, when the index tumbled 24.6%.
The damage was done mostly in the first three months of the year when Nifty plunged as much as 15%. The recovery in the April-June quarter with a meaningful 7% return has fallen flat with another near 5% slump in the July-September period.