New Delhi, Sept. 29 -- Indian benchmark indices, once hailed as the strongest growth story among emerging markets, have lost steam since September 2024. The Sensex and Nifty 50 are down 6.45 per cent and 6.17 per cent, respectively, from their record highs of 85,978.25 and 26,277.35 touched on September 27, 2024.

This marked a sharp pause after a four-year bull run that saw the Nifty 50 climb more than 3.5 times from its March 2020 lows.

The reversal in Indian equities has been driven by both global and local factors. Foreign institutional investors (FIIs) have turned aggressive sellers since October 2024, withdrawing a record Rs.2,42,400 crore-the steepest bout of FII selling on record, according to NSDL data.

Elevated valuations, tig...