Why Nifty, Sensex under pressure despite resilient Indian economy? Chris Wood of Jefferies explains

What happened: Sensex and Nifty 50 ended at 32-month and 18-month lows on 8 October 2026, yet Jefferies' Chris Wood says India's structural growth story remains intact in the Asia Maxima report dated 9 October 2026. Key numbers: Nifty MidCap 100 at 22.9x forward earnings vs Why it matters: Wood attributes benchmark weakness to mid and small caps outperforming large caps and a declining top 20 share of market cap, the opposite of the global passive trend. He says equity supply is limiting Nifty upside, while SME lending and capital goods imports suggest a private capex cycle may be starting.

Sensex and Nifty 50 ended at 32-month and 18-month lows on 8 October 2026, yet Jefferies' Chris Wood says India's structural growth story remains intact in the Asia Maxima report dated 9 October 2026.

Wood attributes benchmark weakness to mid and small caps outperforming large caps and a declining top 20 share of market cap, the opposite of the global passive trend. He says equity supply is limiting Nifty upside, while SME lending and capital goods imports suggest a private capex cycle may be starting.