Explained | Sensex Falls To Pandemic-Era Valuations: Key Reasons Behind The Fall

India’s equity markets are currently undergoing a sharp valuation reset, with the Sensex trading near its lowest price-to-earnings levels since the COVID-19 crash of 2020. In this explainer, Sakshi Batra breaks down what is driving the sustained pressure on Indian equities — from heavy foreign portfolio investor selling and global geopolitical tensions to a weakening rupee and cautious earnings outlook. With FIIs pulling out billions of dollars and benchmark indices correcting significantly from recent highs, market sentiment has turned increasingly risk-averse. Despite this, select sectors such as financials, defence, and premium consumption continue to show resilience. This video explains whether the current fall is a short-term correction or a deeper structural reset, and what it could mean for investors going forward.