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Indian stock market shows signs of stabilization after eight weeks of decline due to external signals
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Aaj Tak
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Indian stock market shows signs of stabilization after eight weeks of decline due to external signals

The Indian stock market is experiencing a period of decline that has lasted for about eight weeks. At the end of last week, on Friday, both indices, Sensex and Nifty, showed a significant drop. However, there are signs that the prolonged downtrend may be interrupted as positive signals arrive from global markets, including the US and Asian exchanges. Furthermore, the Gift Nifty indicator also hints at a possible recovery for the Sensex-Nifty index.

The stock market has been under strong pressure for a long time, and last week was unsuccessful for investors. The main reason for the pressure is the continuous selling by foreign funds. The situation is exacerbated by the instability of crude oil prices, which has negatively affected market sentiment. This is the first time in 25 years that the Indian stock market has declined for eight consecutive weeks. Over these eight weeks, NSE Nifty lost about 9 percent.

On Friday, the last trading day of last week, the market closed with a substantial fall, leading to significant losses for investors. BSE Sensex finished trading at 71,909.70 points, showing a decline of 570.59 points. Meanwhile, NSE Nifty traded in decline throughout the day and ultimately closed at 22,421.95 points, falling by 198.50 points.

The question arises whether the downward trend will continue on Monday, the first trading day of the week, or if it will stop. It was noted that the US markets closed on a positive note last week. On Monday, investors receive positive signals from Asian markets, as most Asian exchanges are trading in the green zone. For example, Japan's Nikkei rose by 1800 points, and South Korea's KOSPI, CAC, and FSE-100 are also showing growth in the green zone.

As for Gift Nifty, which is considered a key indicator for Sensex-Nifty, it showed a sharp rise. As of the writing of this material, it was trading at 22,604 points, up by 114 points. In addition, there is a decrease in crude oil prices in international markets. Although prices remain above the $100 mark, Brent Crude Price has fallen by approximately 1 percent, trading at $101 per barrel.

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Exchange experiences eighth week of decline; pressure remains on the market
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www.aajtak.in

Exchange experiences eighth week of decline; pressure remains on the market

The stock market is currently under significant pressure. During this week, the market showed a decline for two days, and the downward trend is expected to continue. The main reason for the pressure is the ongoing sell-off by foreign funds, and the rise in crude oil prices has once again affected market sentiment.

This is the eighth consecutive week that the Sensex and Nifty indices have fallen. Such a continuous market decline over the last 25 years is unprecedented. However, there is a positive aspect during this downturn: the market will be closed on October 2nd in observance of Gandhi Jayanti.

This week, the NSE Nifty50 index fell by 3.11%, and the total drop over eight weeks reached 8.74%. Among the stocks that performed worst in Nifty was Tata Motors Passenger Vehicles Limited, which lost 19.48%. This was followed by Maruti Suzuki with a drop of 18.89%, Mahindra & Mahindra with a drop of 18.33%, Jio Financial Services with a drop of 17.25%, and TCS with a drop of 15.40%.

On the other hand, Kotak Mahindra Bank demonstrated a growth of 7.06% over 8 weeks, followed by Dr. Reddy's Laboratories with a growth of 2.92%, Adani Ports with a growth of 2.62%, and Coal India with a growth of 1.24%. During this week, Bajaj Auto, Apollo Hospitals Enterprise, and Titan were among the stocks with the largest losses in Nifty, where a fall of up to 10.96% was recorded.

On Thursday, the Sensex index, comprising 30 stocks, closed at 71,909.70 points, corresponding to a fall of 570.59 points or 0.79%. The Nifty index closed at 22,421.95 points, falling by 198.50 points or 0.88%.

Ajit Mishra, Senior Vice President of Religare Broking, noted that the markets faced strong selling pressure again, which intensified the downward trend. After a weak start to trading, when benchmark indices remained in a limited range in the first few hours, an intense period of selling began in the afternoon. Nifty dropped below its support level of 22,400-22,600, and Sensex broke its low level from April 2026 during trading.

Ravi Singh, Chief Researcher at Master Capital Services, stated that the Indian stock market is under pressure, and benchmarks have been moving down for the eighth consecutive week. The reasons cited for this are constant selling by foreign investors, rising global bond yields, and the ongoing tension in the Middle East. Concerns about a possible energy supply disruption through the Strait of Hormuz are supporting high crude oil prices, which increases inflationary and margin pressure.

Singh also added that FII sell-offs are putting pressure on market liquidity, while pressure on the rupee is exacerbating macroeconomic concerns. The rise in US Treasury yields is leading to increased investment by foreign investors in the US.

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