The Nifty 50 index has shed around 10.50% year-to-date (YTD), marking a significant decline that experts warn could be the first negative return in a decade. According to Live Mint, this represents the worst performance since 2015, when the 50-stock index posted a 3% loss. The BSE Sensex has corrected over 12% while the Bank Nifty index has declined around 5.20% in 2026. If the Nifty 50 finishes in the red zone, it would be the first time since 2015, when the last negative return was recorded. Historical data shows the index delivered negative returns in 2011 (23.80% correction) and 2008 (over 51% crash during the subprime crisis).
The IT sector continues to face significant challenges, with Wipro shares trading around ₹185 in August 2026, compared with a 52-week high of roughly ₹273. This represents a decline of more than 30% from its peak, reflecting broader challenges facing the technology services industry. Infosys is trading around ₹1,183 against a 52-week high of ₹1,728, while TCS is near ₹2,434 versus its 52-week high of ₹3,337. The sector weakness is attributed to global technology spending remaining cautious, while investors are still trying to understand how generative AI could affect the traditional IT outsourcing model. However, AI could also give Wipro an opportunity to narrow the gap with its larger peers, as the technology is forcing the entire IT services industry to rethink how it delivers and prices its work.
The Nifty 50's decline is primarily driven by sharp selling in Reliance Industries and HDFC Bank shares, according to Live Mint. Reliance Industries has crashed by around 20% in 2026, while HDFC Bank's share price has nosedived by nearly 30% YTD. As index heavyweights, these two stocks' declines are among the major reasons for the big correction in the Nifty 50 and the BSE Sensex. However, experts believe the Jio Platforms IPO is expected to hit the Indian primary market around Dussehra, which may fuel buying in Reliance shares. Similarly, HDFC Bank is facing a corporate governance issue after the exit of its CEO, with a new CEO expected to be appointed by the end of September 2026.
According to Live Mint, experts believe the Nifty 50 index would either end in the red zone or finish flat at the end of CY2026. Sandeep Pandey from Basav Capital suggests that the rest of the Nifty 50 losses would be covered when there is US dollar inflow, which comes through the FPI and FII. The Indian government introduced FCNR bonds to cause US dollar inflow and pause the fall of the Indian National Rupee (INR). However, FCNR bonds are fetching US dollars at higher rates, providing short-term relief only. Ajit Mishra from Religare Broking notes that geopolitical tensions and elevated crude oil prices remained the dominant drivers, with Brent crude retesting the $110-per-barrel mark intensifying worries over imported inflation. If Reliance and HDFC Bank rally as expected, the Nifty 50 index could approach the 24,500-24,600 levels.
