Indian Markets Fall for Eighth Straight Week as Foreign Selling and Global Risks Weigh
Mumbai – Indian stock markets extended their weekly losing streak to eight consecutive weeks, with benchmark indices falling nearly 3% amid continued foreign institutional investor selling, elevated U.S. bond yields and geopolitical uncertainty.
The Nifty 50 closed at 22,421.95 on Thursday, down 3.1% from the previous week’s close of 23,140.5. The Sensex declined 2.7% to 71,909.7 from 73,895.7 a week earlier.
The latest decline marked the longest weekly losing streak for the benchmark indices in nearly 25 years.
Broader markets also suffered losses, with midcap and smallcap indices falling 3.5% and 3.3%, respectively.
Among sectors, information technology was the only gainer, with the BSE IT index rising 0.2% during the week. The automobile sector recorded the steepest decline, falling 5.5%, followed by consumer durables, which dropped 5.3%.
FMCG and metal stocks declined 4.2% each, while energy, healthcare and real estate indices lost between 3.3% and 3.6%. Banking, capital goods and power indices fell 2.4%, 2.4% and 2.6%, respectively.
Persistent selling by foreign institutional investors continued to weigh on Indian equities, although buying by domestic institutional investors provided some support.
Market analysts attributed the downturn to several factors, including geopolitical tensions, elevated crude oil prices, sustained foreign fund outflows and uncertainty surrounding monetary policy.
Crude oil prices remained above $100 per barrel, while elevated yields on the 10-year U.S. Treasury bond added pressure on emerging markets, including India.
Domestic economic concerns also contributed to weak investor sentiment. Analysts noted that the southwest monsoon ended with a 13% rainfall deficit, raising concerns about agricultural production and potential food inflation.
The recent increase in minimum support prices for major rabi crops has further reinforced expectations that the Reserve Bank of India could maintain a cautious approach to monetary policy.
Investors will closely watch the Reserve Bank of India’s upcoming Monetary Policy Committee meeting, with its interest rate decision scheduled for October 7.
The coming week will also mark the beginning of the second-quarter corporate earnings season, providing additional insight into the financial performance of Indian companies.
Analysts expect market sentiment to remain sensitive to global bond yields, crude oil prices, foreign investment flows and geopolitical developments, while corporate earnings and the central bank’s policy decision could influence the next direction of the market. (Source: IANS)
