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

Indian stock markets came under renewed selling pressure on Thursday, with benchmark indices falling nearly 1% as foreign investors continued to withdraw funds and global economic pressures weighed on investor sentiment.

The BSE Sensex ended 570.59 points, or 0.8%, lower at 71,909.70, while the Nifty 50 declined 0.9% to close at 22,421.95. At its lowest point during the session, the Sensex had fallen more than 1.5%.

The sharp mid-session decline wiped out nearly Rs 9 lakh crore in investor wealth within about an hour. The India VIX, a measure of market volatility, rose 7% to reach its highest level in more than three months.

With Thursday’s decline, both major benchmark indices have now ended lower for eight consecutive weeks. This marks their longest weekly losing streak in 25 years. Indian markets will remain closed on Friday for Gandhi Jayanti.

Auto stocks were among the biggest losers during Thursday’s session after September vehicle sales came in below market expectations. Bajaj Auto fell around 8%, while Mahindra & Mahindra declined 3% to hit a 52-week low. Maruti Suzuki India also fell around 5%, reaching a 52-week low.

Most sectoral and broader market indices ended lower. The Nifty IT index was an exception, rising 2%, with Mphasis, Coforge and Infosys gaining around 4%.

Market analysts said domestic economic fundamentals alone may not be enough to support a sustained recovery while global liquidity remains tight. Foreign investors continued to sell Indian equities amid concerns over rising bond yields, elevated crude oil prices and a weakening currency.

Crude oil prices were around $100 per barrel, while US Treasury yields remained near their highest levels since 2002 amid continuing inflation concerns.

The combination of expensive crude, higher global yields and foreign capital outflows has continued to put pressure on Indian financial markets. Investors are also closely watching currency movements and global liquidity conditions for signs of stability.