Indian Stock Market Extends Losses for Eighth Consecutive Week
The Indian stock market extended its losses for the fourth consecutive session on Thursday, pushing benchmark indices toward their eighth straight weekly decline. The Sensex fell over 100 points to trade below the 72,350 mark, while the Nifty 50 dropped more than 50 points to slip beneath 22,550 around 10 am, according to The Economic Times.
Foreign Institutional Selling Drives the Slump
This ongoing downward trajectory places the market on track for its first eight-week losing streak since 2001, surpassing the seven-week retreat recorded during the Covid-19 crash. Broader market indicators mirrored the sentiment. Nifty Midcap 100 and Nifty Smallcap 100 indices fell up to 0.7%, while the National Stock Exchange recorded 2,148 declines against just 916 advances, leaving 121 stocks unchanged.
Intense foreign institutional investor selling accelerated this week. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed out that foreign institutional investors sold equity totaling Rs 20,128 crore over the last two trading days. Rising US 10-year bond yields, which climbed to 5.3%, continue to drive this capital flight.
An apparent contradiction defines recent trading patterns. While selling Rs 45,536 crore through exchanges in September, foreign investors poured Rs 9,676 crore into the primary market and accumulated expensive mid- and small-cap assets, Vijayakumar noted.
Auto Stocks Plunge While Banks and IT Gain
Sector performance proved deeply fragmented during the Thursday morning session. Nifty Auto plunged over 2% to rank as the session’s top losing sector, dragged down by heavy losses in shares like UltraTech Cement, Eternal, and M&M, which each dropped more than 2%. Conversely, Nifty Private Bank and Nifty IT gained nearly 1% each.
Kotak Mahindra Bank shares jumped nearly 4% following the appointment of a new chief executive officer. Major tech and financial heavyweights including Infosys, HCL Tech, TCS, HDFC Bank, and Axis Bank managed gains of around 1% each, cushioning the broader index from steeper drops.
Technical indicators suggest a fragile footing for the broader market. Hemang Gor, Senior Research Analyst Derivatives and Technical Research at Axis Direct, stated that the market bias remains neutral and subdued while the Nifty trades below 22,800. He identified immediate support at 22,500, with a breach risking a slide toward 22,400.
Outlook and Recovery Triggers on Dalal Street
Market stabilization depends heavily on external commodities and global debt markets. A sustained easing in crude oil prices or US Treasury yields remains necessary for the Nifty to reclaim the 22,800 threshold and push toward 23,000, according to Axis Direct analysis.
Vijayakumar characterized the sell-off as a short-term phase likely to reverse once crude oil prices retreat further. Brent crude recently dipped below $98 per barrel, offering a potential relief valve for domestic equities. Analysts suggest investors utilize this downturn to accumulate high-quality large-cap growth stocks where risk-reward ratios remain favorable.