The Indian stock market has fallen for eight consecutive weeks, marking its longest losing streak in a quarter-century. Foreign investors have pulled out nearly Rs 35,000 crore in just four days, driven by rising US bond yields and high crude oil prices. With the Nifty 50 breaching its 200-week moving average, market sentiment remains cautious as traders await further updates.
Indian equities are witnessing a historically difficult phase, with the markets closing in the red for eight straight weeks. This is the longest losing streak for the Indian benchmark indices in 25 years. The Nifty 50 has settled at 22,421, while the BSE Sensex closed at 71,909, as selling pressure continues to erode market value across the board.
Foreign institutional investors are the primary drivers of this downturn. In the four trading days leading up to October 1, foreign investors offloaded nearly Rs 35,000 crore worth of shares. This consistent withdrawal has overwhelmed domestic support, creating a supply of stocks that current demand cannot match.
Two major global factors are fueling this negative sentiment. First, US 10-year Treasury yields have climbed above 5.3%. When returns on safer US assets rise, global investors often move capital out of emerging markets like India to lock in those gains. Second, Brent crude oil prices remain elevated, consistently trading at or above $100 per barrel. Higher oil prices are a significant concern for the Indian economy as they increase the import bill and heighten inflation risks.
Technical indicators are also flashing warnings. The Nifty 50 has fallen below its 200-week moving average, a level that acts as a long-term support for the market. This line has not been significantly tested since the 2020 pandemic crash. When a major index breaks below this long-term average, it often triggers automated selling from institutional trading systems, which can lead to further short-term volatility.
Investors are now closely monitoring the Reserve Bank of India (RBI) Monetary Policy Committee meeting scheduled for October 5-7. The market is looking for signals on how the central bank plans to manage domestic interest rates amid the current global pressures. Beyond the RBI meeting, the key monitorables for the coming days include the direction of crude oil prices, the stability of the rupee, and whether foreign selling continues or begins to moderate.