INDIA MARKET LENS
Markets2 outlets▼ NegativeInstitutional Flows

Diwali 2026: Sensex plunged 10,000 points, Nifty dropped 12% since last Diwali. Will Samvat 2083 bring some relief?

BSE moved lower in an institutional flows development.

· Economic Times Markets, ET Stocks

Dalal Street heads into Samvat 2083 after a turbulent year that saw the Sensex plunge over 10,750 points and the Nifty shed nearly 12% since last Diwali. The Iran-US conflict, elevated crude oil prices, persistent FII outflows and AI-led IT selloff weighed on sentiment. Can easing headwinds revive the market?

BSE reported movement of 12%. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.

This is an Input cost / crude event. India imports most of its crude, so input costs pass through to margins downstream and to the rupee. Producers and consumers of the same input move in opposite directions.

Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.

  • Sustained FII or DII direction moves the whole market, not just the names being bought — it sets the tape's tone.
  • With BSE involved, this carries a regulatory dimension that can outlast the immediate market reaction.
  • A market-wide development: it reaches beyond any single stock.