New Delhi, April 4 -- India's equity markets wrapped up FY26 with their weakest performance since the covid-19 pandemic, as global shocks rattled sentiment. The Nifty 50 fell 5% and the BSE Sensex dropped 7%, dragged by the West Asia war, a weakening rupee, and heavy foreign outflows.

A sharp selloff on the final trading day deepened losses, with broader markets and all sectors ending in the red. Foreign investors pulled out Rs.1.12 trillion in March, even as domestic institutions cushioned the fall with record buying.

Rising crude prices, currency volatility, and persistent geopolitical risks have made investors cautious, with concerns of slower growth and higher inflation ahead.

Still, valuations offer some comfort. The Nifty now tra...