Exchange experiences eighth week of decline; pressure remains on the market
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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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Nifty breaks support at 22800; market hits lowest level in 6 months
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Nifty breaks support at 22800; market hits lowest level in 6 months

The Indian stock market faced a wave of strong selling on Monday, causing concern among investors. The Nifty-50 index dropped below the critical support level of 22,800 points. This sharp correction reminded investors of the events of March 2026, when Nifty fell to this same level due to escalating conflict between the US and Iran and missile attacks. In just six months, the market found itself in a similar serious situation again.

During Monday's trading, Nifty lost more than 350 points, reaching the mark of 22,785.55. Experts believe that the breach of the 22,800 support is a negative signal for the market. The Sensex index also declined by more than 1100 points.

The main reasons cited for this mass sell-off and chaos are renewed geopolitical tensions in the Middle East, a sudden rise in crude oil prices, and active selling by foreign institutional investors (FIIs). Concerns were amplified by the potential pressure on India's import bill and inflation levels due to the increase in crude oil prices. The price of Brent Crude rose to $107 per barrel.

These factors, combined with selling by foreign investors and weak global signals, put pressure on sentiment, leading to the breach of the strong 22,800 support by Nifty. Analysts warn that following the fall of the key support level, a technical recession in the market could deepen. The largest declines were recorded in the banking, automotive, and small and medium-sized company sectors. Amid uncertainty, experts advise retail investors to exercise caution and await market stabilization rather than making hasty purchases.

The current decline is being compared to the strong sell-off in March 2026. On March 23, Nifty fell by approximately 2.5 percent, reaching 22,506, amid fears of war and tensions between the US and Iran. At that time, rising crude oil prices, foreign investor selling, and geopolitical instability also contributed to the deterioration of the market atmosphere.

Furthermore, a drought report received from Maharashtra on Monday dealt a serious blow to the market. The Maharashtra government declared 265 out of 358 districts of the state affected by drought, covering about 74% of the region's territory. This decision was made because there had been no rainfall for more than 21 days during the monsoon season (criterion-1) and significant Kharif crop damage occurred. Crops grown in Maharashtra include soy, tur, mung, urad, sugarcane, onion, green chili, tomato, and cotton. During the drought, there is a risk of acute shortage of green fodder and water, which could lead to an increase in livestock feed costs.

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