Markets India

Indian equity benchmarks, the Sensex and Nifty 50, fell for a fourth consecutive session on October 1, 2026, extending their losses to an eighth weekly decline. The Sensex dropped over 100 points to 72,350, while the Nifty 50 fell below 22,550, marking the longest losing streak since 2001. The downturn, driven by intense FII outflows and rising U.S. 10-year bond yields, signals heightened risk aversion and market uncertainty.

Indian Benchmarks Fall Amid FII Outflows and Rising Bond Yields, Marking 8th Weekly Loss in 25 Years

The Indian stock market continued its downward spiral, with the Sensex and Nifty 50 extending losses for the fourth consecutive session. The benchmark indices are on track for their eighth weekly loss, surpassing the seven-week crash during the 2020 pandemic. Sensex fell over 100 points to 72,350, while Nifty 50 dropped below 22,550, reflecting investor anxiety over FII outflows and rising U.S. bond yields. Broader indices, including Nifty Midcap 100 and Nifty Smallcap 100, also declined, with Nifty Auto leading sectoral losses.

Foreign institutional investors (FIIs) intensified their selling, with equity sales reaching Rs 20,128 crore over two trading days. Despite this, FIIs continued investing in primary markets and mid/small-cap stocks, totaling Rs 9,676 crore in September. Analysts noted the conflicting strategy may stem from rising U.S. bond yields to 5.3% and expectations of further weakness in Indian large-cap stocks. The technical outlook suggests support levels at 22,500 and 22,400, with recovery dependent on crude oil price declines or easing Treasury yields.

The prolonged sell-off undermines market credibility, with investors facing capital losses and reduced returns. Sector-specific entities like Ultra Tech Cement and Nifty Auto saw sharp declines, while Kotak Mahindra Bank rose nearly 4% following a new CEO appointment. Analysts warned of sustained FII selling and market volatility, though opportunities for accumulating high-quality large-cap stocks in growth sectors remain.

The Indian market’s eighth weekly loss underscores a severe downturn driven by FII outflows and rising bond yields. While technical support levels offer short-term relief, sustained recovery hinges on macroeconomic factors like crude oil prices. Investors may find opportunities in large-cap growth stocks, but prolonged volatility and sectoral underperformance remain risks.

Topics: Stock Markets, Indian Equity, FII Activity, Bond Yields, Market Volatility, Technical Analysis, Large-Cap Stocks, Crude Oil Prices

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Source: ET Markets