India's equity markets experienced a significant downturn in early 2026, with the BSE Sensex and Nifty 50 seeing their worst start to a year in a decade. The sell-off, which erased approximately Rs 17 lakh crore in market value over six days, was driven by a combination of factors including geopolitical tensions, uncertainties surrounding a US-India trade deal, persistent foreign institutional investor selling, and subdued global cues. Analysts point to policy ambiguity and global flashpoints as key contributors to investor unease and market volatility.