The Nifty losing streak has now stretched to seven straight weeks, the longest run of weekly declines for India’s benchmark index since the Covid-19 crash of February–April 2020. The Nifty 50 closed Friday, September 25, 2026 at 23,140.50, down 0.88% for the week, even after a late relief bounce of 0.34% on the final session. The Sensex ended at 73,895.74, a weekly loss of 0.54%.
The slide has been slow rather than dramatic, but it is persistent. Across the seven weeks the Nifty has shed roughly 5.8%, or about 1,430 points, and now sits more than 12% below its 52-week high of 26,373.20. The drivers are a familiar trio for Indian investors in 2026: crude oil above $100 a barrel, US Treasury yields at their highest since 2007, and relentless selling by foreign portfolio investors (FPIs). With the RBI’s October policy review and a holiday-shortened week ahead, the question is whether the streak ends at seven or sets a new post-pandemic record.
Key takeaways
- The Nifty has fallen for seven consecutive weeks, matching the February–April 2020 streak and losing about 5.8% in the process.
- Foreign investors sold a net ₹11,490 crore of Indian shares in the week to September 25; domestic institutions bought ₹16,398 crore, cushioning the fall.
- Brent crude traded between roughly $102 and $106 a barrel on Friday amid US-Iran truce hopes and Strait of Hormuz uncertainty.
- The rupee is hovering near 95.8 per dollar, while India’s 10-year bond yield is around 7.10%.
- The US Federal Reserve lifted its policy range to 3.75%–4.00% on September 16, and the 10-year Treasury yield is near 5.18%.
- The RBI’s Monetary Policy Committee meets October 5–7, with the repo rate currently at 5.25%.
Nifty losing streak by the numbers
| Indicator | Latest level | Change / context |
|---|---|---|
| Nifty 50 (Sep 25 close) | 23,140.50 | +0.34% on day; −0.88% on week |
| Sensex (Sep 25 close) | 73,895.74 | +0.43% on day; −0.54% on week |
| Bank Nifty | 55,580.40 | −1.38% on week |
| Nifty seven-week decline | ~1,430 points | about −5.8% |
| Nifty 52-week high | 26,373.20 | index ~12% below peak |
| FII net flow (Sep 21–25) | −₹11,490.03 crore | net sellers in 4 of 5 sessions |
| DII net flow (Sep 21–25) | +₹16,398.15 crore | net buyers in all 5 sessions |
| FII / DII, September to date | −₹18,531 cr / +₹52,617 cr | provisional exchange data |
| USD/INR | ~95.8 | broadly flat on week |
| Brent crude | ~$102–106/bbl | eased on US-Iran truce hopes |
| India 10-year G-sec yield | ~7.10% | up ~5 bps on week |
| US 10-year Treasury yield | ~5.18% | highest since 2007 |
| US fed funds target range | 3.75%–4.00% | raised Sep 16, 2026 |
| RBI repo rate | 5.25% | held Aug 5; next review Oct 5–7 |
Why the Nifty losing streak refuses to break
No single shock explains the seven-week slide. Instead, several pressures have piled up and reinforced one another, draining risk appetite week after week.
US yields are pulling capital out of emerging markets
The biggest external headwind is the bond market. The 10-year US Treasury yield climbed to its highest level since 2007 this week, as we reported in our analysis of the Treasury yield’s 19-year high. When risk-free dollar assets pay above 5%, the relative appeal of Indian equities trading at premium valuations shrinks. The Federal Reserve’s decision on September 16 to raise its target range to 3.75%–4.00% confirmed the hawkish turn that began with the Warsh Jackson Hole speech. The details are in the Fed’s official implementation note.
Crude above $100 squeezes India’s macro math
India imports the bulk of its oil, so every sustained move in crude feeds into the trade deficit, the rupee and inflation. Brent futures rose more than 17% in September through the 24th, driven by West Asia conflict, attacks on Saudi energy assets and the stalled reopening of the Strait of Hormuz. Prices eased on Friday on reports of phased US-Iran talks, but they remain well above the levels that underpinned India’s benign inflation of 2025.
Sector damage is concentrated but wide
Technology stocks bore the brunt this week, with the IT pack losing about 2.1% as high US yields and slowing client budgets weighed on the sector. Insurance and fintech names also slumped, and Tata group companies collectively lost tens of thousands of crores in market value. Banks were mixed: the Bank Nifty fell 1.38% for the week even as Axis Bank led Friday’s rebound with a gain of about 3%.
India market reaction: Sensex, Nifty, FPI flows, rupee and crude
For Indian investors, the most striking feature of this streak is the tug-of-war between foreign and domestic money. It explains why the fall has been a grind rather than a crash.
FPIs sell, DIIs absorb
Foreign institutional investors were net sellers of ₹11,490.03 crore in the week of September 21–25 and sold on four of the five days. Domestic institutional investors, powered by steady SIP inflows into mutual funds, bought ₹16,398.15 crore and were buyers every single session. For September so far, provisional exchange data show FIIs out by roughly ₹18,531 crore and DIIs in by about ₹52,617 crore. That domestic cushion is the main reason the index has not suffered a single catastrophic week.
Rupee near 95.8, bond yields firm
The rupee closed the week around 95.8 per dollar, broadly unchanged, suggesting the RBI continues to smooth volatility. Previous episodes of pressure, such as when the rupee held steady ahead of an RBI decision, show how central bank intervention tends to cap daily moves. India’s 10-year government bond yield finished near 7.10%, having risen about 46 basis points since the conflict in the Gulf escalated.
Friday’s bounce: relief, not reversal
The Sensex jumped 315 points on Friday on value buying, a dip in oil prices and gains in realty and auto stocks. Broader indices, however, were flat to slightly negative, and India VIX, though still low at around 12, had spiked more than 22% on Thursday. Traders see 23,000 as immediate support for the Nifty and 23,200 as the first hurdle.
How the Nifty losing streak compares with 2020
The last seven-week slide came as Covid-19 lockdowns froze the global economy, and the Nifty fell by roughly a third in weeks. Today’s decline is far shallower at about 5.8%. That difference matters: the current streak reflects valuation compression and capital rotation, not a collapse in earnings or a liquidity crisis.
What is different this time
In 2020, both foreign and domestic investors were panicking. In 2026, domestic flows are strong and household equity participation is at record levels. Corporate earnings growth has slowed but remains positive. For a longer view of these structural shifts, see our guide to trends and strategies for the Indian stock market in 2026.
What is similar
Like 2020, the streak is driven by global forces India cannot control. Oil, US rates and geopolitics set the tone, and local fundamentals take a back seat until those pressures ease. Our earlier look at Indian stock market volatility made a similar point about external shocks dominating sentiment.
Global picture: yields, AI trade and the Fed
Wall Street has been more resilient than India, partly because the artificial intelligence trade continues to support US mega-caps. Nvidia’s blowout results, covered in our Nvidia Q2 earnings report, kept money flowing into US technology even as bond yields rose. That concentration has made it harder for emerging markets to compete for global capital. Asian peers have also been volatile, but India’s premium valuation has made it an easier source of funds for global managers trimming exposure.
What to watch next week
The coming week has only four trading sessions because markets are shut on October 2 for Gandhi Jayanti. Here is a checklist for investors:
- Monthly F&O expiry on Tuesday, September 29: expiry-day positioning could amplify moves around the 23,000–23,200 band.
- FPI flow data: a single day of net foreign buying would be the first sign the selling pressure is easing.
- Brent crude and Hormuz talks: any credible deal to reopen the strait would ease India’s oil import bill and support the rupee.
- US 10-year Treasury yield: a move back below 5% would relieve pressure on emerging market equities.
- RBI MPC, October 5–7: watch for changes to the inflation outlook, which the RBI has said may peak at about 5.9% in October–December.
- Q2 FY27 earnings season: early results from IT and banks in mid-October will test whether valuations have corrected enough.
Frequently asked questions
How long is the current Nifty losing streak?
The Nifty 50 has declined for seven straight weeks through September 25, 2026, the longest such run since February–April 2020.
How much has the Nifty fallen during the streak?
Roughly 5.8%, or about 1,430 points, and the index sits more than 12% below its 52-week high of 26,373.20.
Why are foreign investors selling Indian stocks?
US Treasury yields above 5%, a stronger Fed tightening path, crude oil above $100 and India’s relatively high valuations have made other assets more attractive to global funds.
Will the RBI raise rates in October?
The RBI held the repo rate at 5.25% with a neutral stance in August. Its October 5–7 meeting will weigh rising fuel-driven inflation against slowing growth; the outcome is not certain.
Is the losing streak a buying opportunity?
That depends on each investor’s horizon and risk tolerance. Domestic institutions have been buying, but the external pressures behind the decline have not yet eased.
This article is for informational purposes only and does not constitute investment advice.