Bear Market Grips Major Nifty Stocks Amid Global Pressures

More than 20 Nifty 50 constituents are trading over 20 percent below their recent highs as investors pull back from risky assets. Crude oil prices climbed after joint strikes by the US and Israel on Iran in late February triggered a war in the Middle East. Higher energy costs pushed global bond yields to levels not seen in two decades due to rising inflation risks and wider government deficits.

Market Impact

Back home, a falling rupee, steady selling by foreign investors, and rural economic troubles pushed Indian equities down to rank among the worst performers in Asia for 2026. The Nifty 50 plunged 6 percent in September alone, bringing its total decline for 2026 to 14.2 percent and setting it up for its biggest yearly drop since 2011, when it fell 24.62 percent. Trendlyne figures show that 25 index constituents sit 20 to 40 percent below their recent peaks, entering official bear market territory defined by drawdowns of 20 percent or more.

Sector Drops

Tech majors faced sharp losses, with Infosys dropping 40 percent from its 52-week high of 1,728 rupees and TCS plunging 38 percent. ITC and Hindustan Unilever fell 40 percent and 31.16 percent respectively from their peaks. Tata Group firms like Trent, Tata Consumer Products, and Tata Steel dropped between 20.68 and 25.39 percent. Auto giants Maruti Suzuki, Mahindra and Mahindra, and Bajaj Auto slid between 20 and 34.45 percent, while Reliance Industries dropped 27.55 percent from its earlier high of 1,611.80 rupees.

Context

Bear markets happen when stock prices drop 20 percent or more from recent peaks due to widespread economic stress or investor fear. Global events like wars and rising oil costs often spark these slumps by pushing up inflation and making borrowing more expensive worldwide.