Indian stock markets log worst weekly losing streak in 25 years, fall another 1%

Eight Weeks of Losses for Dalal Street

Indian equity benchmarks closed lower on Thursday, extending a decline that has now run for eight consecutive weeks — the longest such stretch in a quarter century. The Sensex ended 570.59 points, or 0.8%, down at 71,909.70, while the Nifty 50 slipped 0.9% to 22,421.95. At one point during the session, the Sensex had dropped more than 1.5%, erasing roughly Rs 9 lakh crore of investor wealth within about an hour before a partial recovery. The India VIX, a gauge of expected volatility, rose 7% to a three-month high. Markets were closed on Friday for Gandhi Jayanti.

Auto Stocks Lead the Slide

Automobile counters bore the brunt of the selling after September sales figures fell short of expectations. Bajaj Auto lost about 8%, Maruti Suzuki India declined around 5% to a 52-week low, and Mahindra & Mahindra dropped 3%, also touching a 52-week low. Every sectoral and broader index ended in the red except IT, which gained 2%, helped by Mphasis, Coforge and Infosys rising about 4% each. The pressure came largely from foreign portfolio outflows, with FIIs selling roughly $1.1 billion on Wednesday and about $3.8 billion over the month, following two months of net buying. Financial services saw the largest outflows in the first half of September at $647 million, followed by automobiles at $278 million, with oil and gas and FMCG also recording withdrawals.

Why It Matters for Businesses

Persistent foreign selling, crude oil at $100 a barrel, and US Treasury yields at their highest since 2002 are tightening global liquidity conditions. A weaker rupee and elevated bond yields reduce the returns available to overseas investors. For India Inc, this environment raises the cost of capital and complicates fundraising and valuation exercises. Exporters may find some cushion from a softer currency, while import-heavy sectors face margin pressure. The upcoming festive season will be a key test of domestic demand.

What to Watch Next

The RBI Monet…