Mumbai, October 1: Leading Indian equity indices, the BSE Sensex and NSE Nifty 50 have recorded their eighth consecutive week of losses, with the Sensex falling 570 points to reach 71,909 while the Nifty fell 198.50 points, as the markets have witnessed one of the sharpest declines in recent years.
– Market falls for 8 consecutive weeks, the first time in 25 years.
– Nifty slipped over 3 per cent this week, worst weekly fall in 6 months
– Barring IT, all indices record losses@Nigel__DSouza wraps up the market this week pic.twitter.com/1FEPWQwaax
— CNBC-TV18 (@CNBCTV18News) October 1, 2026
This downward momentum has come from a combination of global and domestic challenges:
- Relentless FII Outflows: Foreign Institutional Investors (FIIs) continue to exit from Indian equities, redirecting their funds toward the debt markets or other emerging sectors due to rising economic shifts and geopolitical challenges.
- Surging Global Bond Yields & Crude Prices: Higher interest rates on US treasury yields and other corporate debt instruments have reduced the risk appetite for emerging markets like India. Along with that, the persistent challenge with heightened international crude oil prices continues to fuel inflationary concerns, weakening domestic currency sentiment.
- Broad-Based Selling & Hidden Bear Market: According to data analyzed by The Economic Times, the correction is far more severe than the headline numbers, with nearly half of the companies in the broader Nifty 500 index declining by over 30% from their peak levels.
Market analysts explain that the sustained capital flight by foreign investors remains a challenge, even though domestic institutional investors (DIIs) continue to absorb the selling pressure, while high net worth individual participation remaining slow due to reduced short term returns and heightened volatility across sectors, including banking, auto and technology.
This news comes as a persistent challenge to PM Modi’s Acche Din hopes, as the government is now fighting multiple challenges with inflation, geopolitical challenges and stagnant economic development to deal with an increasingly demanding electorate.
