Nifty Weakness, NSE Correction and Global Markets Put Diversification in Focus

Nidhi Thakur

September 29, 2026

The Indian stock market has remained under pressure, with weak Nifty returns, rising crude oil prices and geopolitical tensions affecting investor sentiment. At the same time, the recent correction in NSE shares has added another layer of discussion around valuations and the outlook for newly listed stocks. Market experts are also looking at global equities as one way to diversify portfolios. The Nifty 50 has fallen 13% over the last two years, while the index is also down around 13% year-to-date as of September 28, according to Mint. Rising crude oil prices, US bond yields, geopolitical risks, tariff-related uncertainty and foreign capital outflows have been among the factors affecting the domestic market.

Santosh Meena, Head of Research at Swastika Investmart, said a measured allocation to global stocks can make sense for Indian investors when the domestic market is struggling to deliver returns. He suggested that global exposure can generally be around 10–20% of an equity portfolio, depending on the investor's situation. Meena also pointed to the diversification benefits of investing outside India. Global markets can provide access to sectors and companies that have relatively limited representation in India, including areas such as pure-play AI, advanced semiconductors and certain healthcare innovators. He also noted that overseas exposure can provide a natural currency hedge when the rupee weakens.

The recent performance of NSE shares has also reflected the pressure in the broader market. NSE shares fell below their IPO price on September 28 and touched ₹1,761 on the BSE. The stock was more than 6% below its listing-day high of ₹1,878. Meena attributed the recent weakness in NSE shares to the broader market sell-off, rising crude oil prices, geopolitical tensions and profit booking after the listing. He also pointed to valuation sensitivity, with the stock trading at around 43 times FY26 earnings. However, he highlighted NSE's dominant market position, high margins, strong cash generation and the longer-term benefits of India's financialisation.

The sharp fall in the broader market was also visible in benchmark indices. NDTV reported a major sell-off as investors reacted to rising oil prices and US-Iran tensions. The developments have kept market participants focused on crude prices, geopolitical developments and global market cues while assessing the near-term direction of Indian equities.