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Indian Stocks Post Eighth Straight Weekly Loss Amid Capital Flight
Indian share prices fell sharply again on Thursday.
The Sensex and Nifty 50, two major stock-market measures, both declined.
The fall reduced the total value of listed companies by about ₹9.5 lakh crore in one day.
The market has now fallen for eight weeks in a row, its longest losing streak since 2001.
Foreign investors have been taking money out of Indian stocks.
Higher returns from US investments are encouraging some of that money to leave emerging markets such as India.
The rupee has also weakened against the US dollar, making imports more expensive.
The finance minister says Indian individual investors can help cushion the market, while analysts say they cannot fully replace foreign investment.
The Sensex fell 570.59 points and the Nifty 50 dropped 198.50 points on Thursday, October 1.
The sell-off erased roughly ₹9.5 lakh crore in market capitalization in one day.
Indian equities lost more than ₹25 lakh crore during the week, marking eight consecutive weekly declines.
Foreign Portfolio Investors withdrew over ₹35,861 crore from Indian equities in September 2026.
Analysts attributed the pressure to high US bond yields, rupee weakness, oil prices, weak earnings and foreign investor outflows.
- Who
- Indian investors, Foreign Portfolio Investors, the Sensex, the Nifty 50 and Indian Finance Minister Nirmala Sitharaman.
- What
- Indian stocks suffered an eighth consecutive weekly decline, including a one-day market-capitalization loss of roughly ₹9.5 lakh crore.
- Where
- India's Bombay Stock Exchange and National Stock Exchange of India.
- When
- Thursday, October 1; the eight-week losing streak was reported for the week ending before Friday, October 2.
- Why
- High US bond yields, foreign investor withdrawals, rupee weakness, oil-price pressure, weak corporate earnings and broader macroeconomic concerns weighed on the market.
Government View
Analyst View
Role of domestic investors
Government View
Nirmala Sitharaman said domestic retail investors act as a counterfoil or shock absorber when foreign capital leaves.
Analyst View
The analysis said domestic investors can cushion outflows but cannot replace the scale of foreign portfolio investment.
Main cause of the decline
Government View
The downturn was described primarily as an external shock involving global capital movements and elevated US bond yields.
Analyst View
The analysis also emphasized domestic weaknesses, including poor corporate earnings, expanding current-account deficits and a lack of a strong investment story.
Oil-price explanation
Government View
The ongoing oil shock, with crude prices described as approaching $100 per barrel, provides a visible explanation for some of the pressure.
Analyst View
The analysis said oil alone is too simple an explanation because the rupee also weakened in 2025, when there was no war or oil shock.
Key facts
- Sensex decline
- 570.59 points, or 0.79%, on Thursday
- Nifty 50 decline
- 198.50 points, or 0.88%, to settle at 22,421.95
- One-day market loss
- Approximately ₹9.5 lakh crore in market capitalization
- Weekly market loss
- More than ₹25 lakh crore
- Losing streak
- Eight consecutive weeks, described as the worst streak since 2001
- September FPI withdrawals
- More than ₹35,861 crore from Indian equities
- Rupee exchange rate
- ₹96.31 per US dollar, according to the article
Sources
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