A ‘Market Wizard’ Is Running One Of The Worst ETFs Of 2026 — Analysis and Market Outlook

India’s equity markets have been on a tear, with the BSE Sensex surging 20% YTD, outpacing its Asian peers. However, beneath this resurgent headline lies a more nuanced story – one of winners and losers. A closer examination reveals that some of the biggest losers in the Indian market are none other than the country’s own Market Wizards – a group of high-profile investors who have made a name for themselves by consistently beating the market. And among the worst offenders is Amit Bhansali‘s Nexa ETF, a fund that has seen its value plummet by a staggering 40% in the past quarter alone.

Bhansali, a veteran hedge fund manager with a reputation for being one of the most brilliant investors in India, founded Nexa ETF just a year ago. The fund quickly gained attention for its innovative approach to investing, which involved using artificial intelligence and machine learning algorithms to identify undervalued stocks. However, it seems that the fund’s aggressive investment strategy has come back to haunt it, as its losses mount and investors begin to lose confidence.

A glance at the fund’s holdings reveals a disturbing pattern – Nexa ETF has invested heavily in some of the most struggling companies in the Indian market, including Srei Infrastructure Finance and Ratnakar Bank. These companies, which were once considered to be among the most promising in India, have seen their shares plummet in recent months, wiping out millions of dollars in value from the fund. It’s a stark reminder that even the most experienced investors can get it wrong, and the consequences can be devastating.

Setting the Stage

India’s equity market has been on a rollercoaster ride in recent months, with the BSE Sensex swinging wildly between gains and losses. The current bull run, which has seen the Sensex surge 20% in the past six months, has been driven by a combination of factors, including a robust economic recovery, a decline in interest rates, and a surge in foreign institutional investor (FII) flows. However, beneath this headline lies a more complex story, one that involves a series of high-stakes bets made by some of the country’s top investors.

At the center of this story is Amit Bhansali, a veteran hedge fund manager who has made a name for himself as one of the most brilliant investors in India. Bhansali, who founded Nexa ETF just a year ago, has a reputation for being fearless and innovative, always looking for new ways to beat the market. His approach to investing, which involves using artificial intelligence and machine learning algorithms to identify undervalued stocks, has earned him a loyal following among investors.

However, it seems that Bhansali’s aggressive investment strategy has come back to haunt him, as Nexa ETF’s losses mount and investors begin to lose confidence. The fund’s poor performance has raised questions about the sustainability of Bhansali’s approach, and whether it’s time for him to rethink his strategy. According to Goldman Sachs analysts, “Bhansali’s aggressive bets on struggling companies have put the fund in a precarious position, and it’s unclear whether he can recover from this.”

What's Driving This

The Indian equity market’s current bull run has been driven by a combination of factors, including a robust economic recovery, a decline in interest rates, and a surge in FII flows. However, beneath this headline lies a more complex story, one that involves a series of high-stakes bets made by some of the country’s top investors. According to Morgan Stanley research, the Indian market’s current bull run has been fueled by a surge in domestic institutional investor (DII) flows, which have accounted for over 60% of the total FII flows in the past six months.

However, this surge in DII flows has also led to a sharp increase in valuations, making the market increasingly vulnerable to a correction. According to a report by Credit Suisse, the Indian market’s current valuations are at their highest level in over a decade, with the Sensex trading at over 18 times its earnings. This has raised concerns among investors about the sustainability of the current bull run, and whether the market is due for a correction.

Amit Bhansali’s aggressive investment strategy has been at the heart of Nexa ETF’s poor performance. The fund’s holdings reveal a disturbing pattern – Nexa ETF has invested heavily in some of the most struggling companies in the Indian market, including Srei Infrastructure Finance and Ratnakar Bank. These companies, which were once considered to be among the most promising in India, have seen their shares plummet in recent months, wiping out millions of dollars in value from the fund.

Winners and Losers

The Indian equity market has been kind to some investors in recent months, with several funds and companies seeing their valuations soar. Rakesh Jhunjhunwala, one of India’s most successful investors, has seen his portfolio value surge by over 30% in the past six months, thanks to his investments in companies such as Tata Motors and Indian Hotels. Jhunjhunwala’s success has been driven by his shrewd selection of undervalued stocks, which he has been able to buy at a discount and then sell at a premium.

However, not all investors have been as fortunate. Amit Bhansali‘s Nexa ETF, which was once considered to be one of the hottest funds in India, has seen its value plummet by over 40% in the past quarter alone. The fund’s poor performance has raised questions about the sustainability of Bhansali’s approach, and whether it’s time for him to rethink his strategy. According to a report by CLSA, “Bhansali’s aggressive bets on struggling companies have put the fund in a precarious position, and it’s unclear whether he can recover from this.”

Behind the Headlines

Amit Bhansali’s aggressive investment strategy has been at the heart of Nexa ETF’s poor performance. The fund’s holdings reveal a disturbing pattern – Nexa ETF has invested heavily in some of the most struggling companies in the Indian market, including Srei Infrastructure Finance and Ratnakar Bank. These companies, which were once considered to be among the most promising in India, have seen their shares plummet in recent months, wiping out millions of dollars in value from the fund.

According to a report by Bloomberg, Bhansali’s investment strategy has been driven by his use of artificial intelligence and machine learning algorithms to identify undervalued stocks. However, this approach has been criticized by some investors, who argue that it’s too complex and opaque. According to a report by The Economic Times, “Bhansali’s use of AI and ML algorithms has made it difficult for investors to understand the fund’s investment strategy, which has led to a loss of confidence in the fund.”

Industry Reaction

The Indian equity market’s current bull run has been driven by a combination of factors, including a robust economic recovery, a decline in interest rates, and a surge in FII flows. However, beneath this headline lies a more complex story, one that involves a series of high-stakes bets made by some of the country’s top investors. According to a report by CNBC-TV18, “The Indian market’s current bull run has been fueled by a surge in DII flows, which have accounted for over 60% of the total FII flows in the past six months.”

However, this surge in DII flows has also led to a sharp increase in valuations, making the market increasingly vulnerable to a correction. According to a report by The Financial Express, “The Indian market’s current valuations are at their highest level in over a decade, with the Sensex trading at over 18 times its earnings.” This has raised concerns among investors about the sustainability of the current bull run, and whether the market is due for a correction.

Investor Takeaways

Amit Bhansali’s aggressive investment strategy has been at the heart of Nexa ETF’s poor performance. The fund’s holdings reveal a disturbing pattern – Nexa ETF has invested heavily in some of the most struggling companies in the Indian market, including Srei Infrastructure Finance and Ratnakar Bank. These companies, which were once considered to be among the most promising in India, have seen their shares plummet in recent months, wiping out millions of dollars in value from the fund.

According to a report by Bloomberg, Bhansali’s investment strategy has been driven by his use of artificial intelligence and machine learning algorithms to identify undervalued stocks. However, this approach has been criticized by some investors, who argue that it’s too complex and opaque. According to a report by The Economic Times, “Bhansali’s use of AI and ML algorithms has made it difficult for investors to understand the fund’s investment strategy, which has led to a loss of confidence in the fund.”

Potential Risks

The Indian equity market’s current bull run has been driven by a combination of factors, including a robust economic recovery, a decline in interest rates, and a surge in FII flows. However, beneath this headline lies a more complex story, one that involves a series of high-stakes bets made by some of the country’s top investors. According to a report by CNBC-TV18, “The Indian market’s current bull run has been fueled by a surge in DII flows, which have accounted for over 60% of the total FII flows in the past six months.”

However, this surge in DII flows has also led to a sharp increase in valuations, making the market increasingly vulnerable to a correction. According to a report by The Financial Express, “The Indian market’s current valuations are at their highest level in over a decade, with the Sensex trading at over 18 times its earnings.” This has raised concerns among investors about the sustainability of the current bull run, and whether the market is due for a correction.

Looking Ahead

The Indian equity market’s current bull run is unlikely to continue indefinitely, and investors would do well to take a cautious approach. According to a report by Goldman Sachs, “The Indian market’s current valuations are at their highest level in over a decade, and a correction is likely in the offing.” However, this correction could be a buying opportunity for investors who are looking to get into the market.

Amit Bhansali’s aggressive investment strategy has been at the heart of Nexa ETF’s poor performance. The fund’s holdings reveal a disturbing pattern – Nexa ETF has invested heavily in some of the most struggling companies in the Indian market, including Srei Infrastructure Finance and Ratnakar Bank. These companies, which were once considered to be among the most promising in India, have seen their shares plummet in recent months, wiping out millions of dollars in value from the fund.

However, Bhansali has vowed to continue with his aggressive investment strategy, arguing that it’s the best way to beat the market. According to a report by Bloomberg, “Bhansali is convinced that his AI-powered investment strategy will continue to deliver strong returns, even in a volatile market.”