Indian Stock Market This Week: Nifty Ends an Eighth Straight Weekly Fall

What happened in the Indian stock market this week?

Nifty 50 closed at 22,421.95 and Sensex at 71,909.70 on Thursday, 1 October. Friday was a holiday for Gandhi Jayanti. For the holiday-shortened week, Nifty fell 3.1 per cent and Sensex 2.7 per cent, the eighth straight weekly fall for both. Over eight weeks the losses add up to 8.7 per cent for Nifty and 8.4 per cent for Sensex, which Business Today calls the longest weekly losing run in 25 years.

• Foreign flows: FPIs were net sellers of Rs 9,484.22 crore on Thursday, while DIIs were net buyers of Rs 10,041.84 crore. Over the week, FIIs sold roughly Rs 35,000 crore.
• Sectors: Consumer and Auto indices fell the most.
• Volatility: India VIX rose to about 14.45.

Why did the market fall?

A "risk-off" move means investors reduce exposure to riskier assets and move toward safer ones. Several triggers pointed that way at once:

1. Crude oil near $100. Brent stayed above $100 a barrel amid uncertainty over the Iran war. India imports most of its oil, so higher crude raises costs and pressures the rupee.
2. US bond yields at multi-year highs. The US 10-year Treasury yield rose to its highest since mid-2007. When US yields rise, safer US assets look more attractive relative to emerging markets like India.
3. A weaker rupee. The rupee was at 95.96 per dollar on 24 September and has stayed weak since. This reduces dollar returns for foreign investors.
4. Higher domestic yields. The 10-year government bond yield was about 7.11 per cent on 24 September and has since climbed to its highest in over two years.
5. An RBI decision ahead. A Reuters poll expects a 25 basis point hike to 5.50 per cent on 7 October, which would be the first increase since 2023. This is an expectation, not a decision.

Who is impacted?

• Equity mutual fund and SIP investors: Portfolio values moved down with the market. SIP instalments continue to buy units at lower NAVs during such phases.
• Debt fund and FD investors: Rising yields can cause short-term dips in some debt funds, while new FDs and bonds may eventually offer higher rates.
• Borrowers: If the RBI raises rates, floating-rate loans such as many home loans can become costlier over time.
• NRI investors: A weaker rupee changes the conversion on existing investments and fresh remittances, depending on holding period and currency needs.
• Importers and consumers: Higher crude and a weaker rupee can raise fuel and input costs over time.

What should investors understand?

Falls driven by global factors differ from falls driven by a company or sector breaking down. This week's pressure came from oil, US yields and foreign flows, which can reverse or persist, and no one can reliably say which.

• Domestic investors absorbed much of the selling. DIIs bought roughly as much as FPIs sold on Thursday, which is part of why the fall was not steeper.
• A weekly streak describes the past, not the future. Eight losing weeks say nothing certain about week nine.

What should investors avoid overreacting to?

• Daily and weekly index moves. One week is a small slice of a long-term goal.
• Technical-level and "target" talk. Much of it is short-term and not a basis for long-term decisions.
• Pausing a SIP because of market mood. Plan changes are better tied to changes in goals, income or time horizon. A SEBI-registered adviser can help with personal decisions.
• Single-headline certainty. The Iran war, crude and US yields are all uncertain, so confident claims about any of them deserve caution.

Tarun’s POV: Eight straight weekly falls are uncomfortable, but they shouldn’t automatically change a long-term investment strategy. With crude, US yields, foreign outflows and rupee weakness adding pressure, volatility may remain. Focus on your goals, time horizon and asset allocation—not one week of market headlines.

Sources:

• Business Today, "Stock market sell-off: Nifty, Sensex log 8th straight weekly loss; key levels & top triggers now," 2 October 2026
• Deccan Chronicle, "Sensex, Nifty Fall For Eighth Straight Week Amid FII Selling," 2 October 2026
• Business Standard, "Sensex, Nifty extend losses amid F&O expiry volatility, oil price pressure," 29 September 2026
• Business Standard, "Rupee, bonds witness sell-off as crude oil, US Treasury yields rise," 24 September 2026
• NSE / BSE: index closes and FPI/DII provisional data for 1 October 2026.
• RBI: MPC schedule and the 7 October 2026 policy statement