The Indian stock market has ended its longest weekly losing streak in 25 years, with the Nifty 50 closing lower for the eighth consecutive week. A combination of elevated crude oil prices, rising US bond yields, sustained foreign investor selling, rupee weakness and geopolitical uncertainty has weighed on investor sentiment. The Nifty 50 fell 198.50 points, or 0.88 per cent, to settle at 22,421.95 on Thursday, while the Sensex declined 570.59 points, or 0.79 per cent, to 71,909.70. The Bank Nifty also ended lower at 54,450.75, down 182.30 points, or 0.33 per cent.

The Nifty has lost more than 8.5 per cent over the past eight weeks and recorded its lowest weekly close since April 2025. The benchmark also remained under pressure for the fourth consecutive trading session and has shed more than 1,200 points over the past six sessions. During the selloff, the index briefly slipped into negative territory for fiscal 2027 before recovering some ground. It also touched its lowest level since April 2026, highlighting the persistence of the ongoing correction.

Elevated crude oil prices have emerged as a major concern for Indian equities. Brent crude was hovering around $99 a barrel during Thursday's session, raising concerns for oil-importing economies such as India. Higher crude prices can increase the country's import bill and put pressure on inflation and the rupee, while also affecting corporate profit margins. At the same time, US Treasury yields have risen sharply, with the 10-year yield around 5.3 per cent, its highest level since 2002, while the 30-year yield moved above 5.6 per cent. Higher US yields can make dollar-denominated assets more attractive and tighten global financial conditions.

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Foreign investor selling has added significantly to the pressure. FPIs sold Rs 10,148.41 crore of Indian equities on September 30, their biggest single-day outflow in nearly six months, according to provisional data. September's cumulative FII outflow stood at around Rs 44,013 crore, with foreign investors remaining net sellers in 16 of 21 trading sessions. Domestic institutional investors offered some support by buying Rs 11,272 crore on September 30, but the scale of foreign selling has continued to weigh on the market. Auto stocks have also faced heavy pressure, with the Nifty Auto index falling more than 3 per cent on Thursday and nearly 6 per cent during the week. Bajaj Auto and Uno Minda were among the weaker performers.

Geopolitical uncertainty has added another layer of volatility, particularly amid developments involving the US-Iran conflict and their potential implications for energy prices and global supply chains. The resulting uncertainty has coincided with inflation concerns and elevated bond yields, creating a difficult environment for risk assets. Meanwhile, the Indian rupee has weakened as crude prices rise, the dollar strengthens and foreign investors withdraw funds. The rupee traded around 95.99 against the US dollar before slipping to around 96.32 on October 1, its weakest level in two months, according to Reuters.

The combination of higher oil prices, elevated US yields, persistent foreign outflows, pressure on auto stocks, geopolitical uncertainty and rupee weakness has therefore kept Indian equities under sustained pressure. A weaker rupee can further complicate the inflation outlook by increasing the domestic cost of imported commodities, particularly crude oil. With the Nifty's eight-week decline marking its longest weekly losing streak since 2001, investors are closely watching global bond yields, oil prices, currency movements and foreign fund flows for signs of a change in the market's current trend.

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