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India’s Nifty 50 and BSE Sensex fell for an eighth consecutive week through October 1, 2026—their longest weekly losing streak in 25 years, according to Reuters. The streak measures how long the declines lasted, not their size: over those eight weeks, the Nifty 50 lost 8.7% and the Sensex 8.4%. The reports point to several overlapping pressures, including foreign selling, elevated oil prices and global yields, rather than one established cause.

What happened to the Nifty 50 and Sensex?

The holiday-shortened week ended Thursday, October 1, because Indian markets were closed Friday for Gandhi Jayanti. Reuters reported weekly losses of 3.1% for the Nifty 50 and 2.7% for the BSE Sensex. Financial Express gave more precise weekly figures of 3.11% and 2.69%, respectively, and dated the longest streak since 2001.

Index Week ended October 1 Loss over eight consecutive weeks October 1 close
Nifty 50 3.1% (Reuters); 3.11% (Financial Express) 8.7% (Reuters) 22,421.95, down 0.88% (Reuters)
BSE Sensex 2.7% (Reuters); 2.69% (Financial Express) 8.4% (Reuters) 71,909.70, down 0.79% (Reuters)

On October 1, the indices fell as much as 1.78% and 1.64%, respectively, before recovering more than half their intraday losses, Financial Express reported. It described the Sensex close as its lowest in 28 months and the Nifty 50 close as its lowest in six months.

Why did Indian shares fall for eight straight weeks?

Reuters’ coverage and other reports identify concurrent headwinds, not a single proven explanation or a precise breakdown of how much each factor contributed.

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Foreign investors sold shares as domestic institutions bought

Reuters reported foreign outflows of $27.8 billion from Indian equities so far in 2026, describing the amount as a record. For the week, Financial Express reported foreign portfolio investor sales of ₹33,882 crore and domestic institutional investor purchases of ₹33,455 crore. Domestic buying cushioned the selling but did not prevent the indices from falling; the annual dollar figure and weekly rupee figures cover different periods.

Oil prices raised concerns about India’s costs

Reuters reported Brent crude above $100 a barrel; other coverage put it near $99 to $100 during the session. Reports connected expensive oil with potential pressure on India’s import bill, inflation and rupee, as well as corporate margins. Indian Express also cited West Asia tensions and US-Iran negotiations as part of the uncertain backdrop for oil and markets.

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US yields and currency pressure weighed on sentiment

Reuters said the US 10-year Treasury yield reached its highest level since mid-June 2007. It also reported the rupee at a two-month low and India’s benchmark 10-year yield at a more-than-two-year high. Geojit Investments’ Vinod Nair told Financial Express that higher US yields and a narrowing India-US yield differential were contributing to rupee weakness. These are reported market conditions and attributed commentary, not a quantified explanation of the index losses.

Demand concerns hit parts of the market

Reuters reported that 15 of 16 major sectors lost ground over the week. Autos fell 5.9% and consumer durables 6.2%; its coverage said a weak monsoon intensified concerns about demand. Financial Express also pointed to weak wholesale auto-sales data and pressure on public-sector banks, real estate and metals.

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Which sectors held up—and which fell most?

Weakness was broad but not uniform. Reuters reported information technology as the only sector with a weekly gain, up 0.5%, after slower-than-expected US inflation reduced expectations of rate hikes. Financial Express also identified IT as the only sectoral gainer and noted that rupee depreciation can benefit the sector.

Reuters reported weekly declines of 3.4% for small-caps and 3.6% for mid-caps. Financial Express separately reported BSE Midcap down 3.65% and BSE Smallcap down 2.64%; its outlet-specific index figures are not identical to Reuters’ figures for small- and mid-cap stocks. Financial Express also put BSE-listed market capitalization at ₹467 lakh crore, down from ₹481.9 lakh crore over the week, a reported reduction of ₹15 lakh crore.

What was expected from the RBI?

As of October 5, 2026, the Reserve Bank of India’s policy decision was still pending and scheduled for October 7. Reuters reported that economists in a Reuters poll expected a 25-basis-point increase to 5.50%, potentially the first increase since 2023. That was a pre-decision expectation, not an announced rate change.

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How should investors read the outlook comments?

Analysts quoted in the coverage offered opinions, not guaranteed outcomes or a consensus forecast. Prasenjit Paul, head equity analyst at Paul Asset and fund manager at 129 Wealth Fund, told Reuters: “We are very close to the bottom. I do not expect another 10% fall from here, but neither do I see a sharp recovery in the next three to four months,”

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Vikram Kasat, chief business officer for advisory and dealing at PL Capital, told Indian Express: “The key takeaway for October is that domestic fundamentals alone may not be sufficient to drive a sustained recovery while global liquidity remains tight,”

Neither comment establishes what markets would do next. The available reporting describes conditions and views through October 1; it does not establish subsequent market performance or the eventual RBI decision.

Sources

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