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Indian markets ended their eighth straight week lower, surpassing the seven-week Covid-era losing streak. Nifty fell 3.1% this week as FPI selling, oil and rupee pressure weighed.
The Indian markets closed lower for all four sessions during this week.
Stock Market Today, October 2: Indian equity benchmarks extended their losing run to an eighth straight week on Thursday, marking the longest stretch of weekly declines in 25 years and taking the streak beyond the seven-week sell-off witnessed during the Covid-19 crash in 2020.
The Nifty 50 fell 198.50 points, or 0.88%, to close at 22,421.95 on Thursday, while the BSE Sensex declined 570.67 points, or 0.79%, to end at 71,909.70. For the week, the Nifty dropped 3.1%, while the Sensex lost 2.7%.
The Indian markets closed lower for all four sessions during this week. The bourses remain closed on Friday on account of ‘Gandhi Jayanti’.
The eight-week losing streak has taken the Nifty down about 8.7% and the Sensex about 8.4%. The current stretch is the longest since 2001, when the Nifty recorded a nine-week losing streak. The market’s seven-week decline during the Covid crash in 2020 has now also been surpassed.
Thursday’s session added to the pressure, with the Nifty slipping below the 22,500 mark and coming close to its 52-week low. The index hit an intraday low of around 22,217 before recovering some ground.
Foreign selling, high yields weigh on markets
Persistent selling by foreign investors remained one of the biggest concerns for Dalal Street. Foreign portfolio investors have been pulling money out of Indian equities amid elevated US bond yields, a stronger dollar and concerns over the outlook for emerging-market assets.
“Foreign institutional investors (FIIs) continued to remain net sellers in the past week, offloading equities worth Rs 34,970 crore based on provisional exchange data. On the other hand, domestic institutional investors (DIIs) provided strong support to the market, emerging as net buyers with investments totalling Rs 33,460 crore,” said Pabitro Mukherjee, deputy vice president (research) of Bajaj Broking.
He added that the broader trend remains unchanged on a month-to-date basis. FIIs have pulled out a substantial Rs 44,010 crore from Indian equities during September 2026, while DIIs have infused Rs 76,030 crore during the same period. FIIs remained net seller in market for the 15th consecutive month as per provisional figures.
The selling has coincided with a sharp rise in global bond yields. The US 10-year Treasury yield has moved to multi-year highs, making dollar-denominated fixed-income assets relatively more attractive and adding pressure on emerging markets.
The rupee’s weakness has added another layer of concern. The Indian currency slipped past the Rs 96-per-dollar mark during the week, increasing worries over imported inflation and the country’s external balances.
Crude oil adds to investor worries
Elevated crude oil prices have also complicated the market outlook. Brent crude has been hovering around the $100-a-barrel level amid continuing geopolitical tensions.
For India, higher crude prices are particularly important because of the country’s dependence on imported oil. A sustained rise in crude can increase the import bill, put pressure on the rupee and complicate the inflation outlook.
The combination of expensive oil, a weaker rupee and higher global bond yields has therefore emerged as a key headwind for Indian equities.
Broad-based selling
The sell-off was not restricted to the benchmark indices. According to Reuters, 15 of 16 major sectoral indices declined during the week. Auto and consumer durables were among the worst hit, while midcap and smallcap stocks also came under pressure. The Nifty Auto index fell sharply during the week amid concerns over demand and automobile sales.
Information technology was the notable exception. The Nifty IT index gained around 0.5% during the week, helped by expectations that softer US inflation could support the outlook for US monetary policy.
September ends as another weak month
The eight-week losing streak also caps a particularly difficult September for Indian equities. The Nifty fell about 6.7% during the September derivatives series, its worst monthly performance in 25 years, while foreign investors remained heavy sellers. FII index short positions also rose sharply during the month.
The latest decline has also pushed the Nifty below its closely watched 200-week moving average around 22,600, making the 22,600-22,400 zone an important technical area for the market.
While foreign investors have continued to sell, domestic institutional investors have been absorbing a significant part of that supply. The persistent DII buying has helped prevent the correction from becoming as deep as some previous prolonged losing streaks. The current eight-week decline of around 9% remains significantly smaller than the roughly 22% fall recorded during the 2008 episode and the more than 33% decline during the 2020 Covid crash.
That distinction is important: the current episode is historic in terms of its duration, but not yet comparable with the magnitude of the major market crashes seen in 2008 or 2020.
What next for Dalal Street?
Investors will enter the next trading week watching crude oil prices, US Treasury yields, the rupee and foreign fund flows closely. The upcoming corporate earnings season will also be important in determining whether improving earnings can counter the pressure from global liquidity and macroeconomic concerns.
Vinod Nair, head of research at Geojit Investments, said, “Looking ahead, the RBI policy decision will be the key domestic trigger, with pressure to support the rupee and contain imported inflation strengthening expectations of a rate hike. Meanwhile, India’s PMI will indicate whether domestic activity is holding up against global headwinds, while US payrolls, PMI data and FOMC minutes will shape Fed expectations and the direction of global yields. With Q2 earnings expected to be softer than Q1, sentiment is likely to remain fragile.”
He added that a meaningful de-escalation in West Asia could trigger a sharp relief rally. Until then, investors should stay selective, favouring earnings visibility and balance-sheet strength, while long-term investors may use market weakness to accumulate quality names gradually.
Technical View
Rupak De, senior technical analyst at LKP Securities, said, “The Nifty started lower as sentiment remained weak due to the rise in the US 10-year bond yield and strong crude oil prices. During the day, the index fell further as strength in crude oil added to the negative sentiment. Sentiments continue to remain weak as the index closed below its 200-week moving average for the first time since the Covid crash.”
On the lower end, support is placed at 22,200, below which further correction towards 22,060 looks possible. On the higher end, resistance is placed at 22,600. The index will remain in a sell-on-rise mode as long as it remains below 22,600, he added.
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Ask News18Persistent selling by foreign investors, elevated US bond yields, a stronger dollar, a weaker rupee crossing the Rs 96-per-dollar mark, and elevated crude oil prices hovering around $100 a barrel due to geopolitical tensions weighed heavily on Indian equities.
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Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
October 02, 2026, 08:51 IST
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