Indian Stocks Post Longest Weekly Losing Run In 25 Years As Sensex, Nifty Slide Over 2% Again

Indian markets extended their losing streak to eight weeks, the longest in 25 years, as foreign outflows, elevated crude prices and rupee weakness weighed on investor sentiment.
Indian equity markets extended their decline for an eighth consecutive week. This marks the longest weekly losing streak for the benchmarks in 25 years. The holiday-shortened week saw the Sensex fall 1,986.04 points, or 2.68%, to 71,909.70. The Nifty 50 declined 718.55 points, or 3.10%, to 22,421.95.
The sell-off was driven by several domestic and global factors. Elevated Brent crude prices, higher global bond yields, continued foreign fund outflows and a weaker rupee weighed on investor sentiment.
Mid And Small-Cap Stocks Also Under Pressure
The Nifty Midcap 100 declined 3.5% during the week. It extended its losing streak to four consecutive weeks. The Nifty Smallcap 100 also fell for a fourth straight week. The index declined 3.3% during the period.
Sectoral performance remained weak across the market. Nifty Consumer Durables fell 6%, while Nifty Auto declined 5.8%.
Nifty Metal, FMCG and PSU Bank indices each lost more than 4%. Realty, Healthcare, Infrastructure and Oil & Gas also declined by more than 3% each. Nifty IT was the only sectoral index to gain, rising 0.5%.
Rupee Falls 50 Paise As Foreign Selling Continues
The Indian rupee weakened by 50 paise against the US dollar during the week. It closed at ₹96.32 on 1 October 2026, compared with ₹95.82 on 25 September 2026. The rupee traded between ₹95.74 and ₹96.32 during the week. It also moved closer to its record low of ₹96.96 after coming under pressure on Thursday.
The market sell-off wiped out nearly ₹15 lakh crore from the combined market capitalisation of Bombay Stock Exchange (BSE)-listed companies. Foreign institutional investors (FIIs) accelerated their selling, offloading equities worth ₹34,966.07 crore during the week.
Domestic institutional investors provided some support. They bought equities worth ₹33,455.30 crore during the same period.
Also Read - Sudhakar Malli Named RBI Executive Director, Takes Charge Of Supervisory Assessment From 1 October
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer

Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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