Markets Record Eight Straight Weeks Of Losses
Indian stock markets have entered a prolonged period of weakness, with the benchmark Sensex and Nifty 50 recording losses for eight consecutive weeks. This is the longest weekly losing streak for the Indian equity market in 25 years.
The latest decline came on October 1, when the Sensex fell 570.59 points, or 0.8%, to close at 71,909.70. The Nifty 50 declined 0.9% to 22,421.95.
Nearly Rs 15 Lakh Crore Investor Wealth Erased
The selling pressure intensified during Thursday’s session, with the Sensex falling more than 1.5% at one point before recovering some ground.
At the day’s lowest level, around Rs 9 lakh crore in investor wealth was wiped out within roughly an hour. Across the week, the total market capitalisation of BSE-listed companies declined by around Rs 15 lakh crore.
The Sensex lost 2.7% during the week, while the Nifty declined 3.1%.
Foreign Investors Continue To Sell
Persistent selling by foreign portfolio investors remains one of the biggest pressures on Indian equities.
Foreign investors have withdrawn more than Rs 3 lakh crore from Indian equities so far in 2026. Their selling accelerated towards the end of September as global bond yields increased and crude oil prices remained elevated.
Higher US Treasury yields make dollar-denominated assets relatively more attractive, potentially reducing the flow of overseas capital into emerging markets such as India.
Crude Oil And Rupee Add To Market Pressure
Crude oil prices hovering around $100 per barrel have added another concern for Indian investors.
India imports a large share of its crude oil requirements, meaning higher oil prices can increase the country’s import bill and put pressure on inflation and the rupee.
The Indian currency has also weakened, while the US 10-year Treasury yield has climbed to multi-year highs.
Auto Stocks Take A Major Hit
Automobile stocks were among the biggest losers during Thursday’s session after September sales numbers failed to meet market expectations.
Bajaj Auto fell around 8%, while Mahindra & Mahindra declined about 3%. Maruti Suzuki also dropped around 5% and touched a 52-week low.
The broader auto index was among the weakest sectoral performers during the week.
IT Stocks Buck The Trend
Information technology stocks provided some relief, with the Nifty IT index gaining around 2% on Thursday.
Stocks including Infosys, Coforge and Mphasis recorded gains as a weaker rupee can benefit Indian IT companies that earn a substantial portion of their revenue in foreign currencies.
However, most other sectoral indices ended the session lower.
What Is Driving The Market Weakness?
The current market pressure is being driven by a combination of foreign fund outflows, elevated crude prices, rising global bond yields, rupee weakness and geopolitical uncertainty.
Investor attention will now turn towards the Reserve Bank of India’s upcoming monetary policy meeting, domestic festive-season demand and developments in global oil and bond markets.
Summary
Indian stock markets have recorded their longest losing streak in 25 years, with the Sensex and Nifty falling for eight consecutive weeks. Foreign investor selling, crude oil prices near $100 per barrel, rising US Treasury yields, rupee weakness and geopolitical uncertainty have intensified pressure. Auto stocks were among the biggest losers, while IT stocks managed to buck the broader market decline.
