Dalal Street Extends Losing Run To Eighth Week As Sensex And Nifty Slide On Foreign Selling Persistent foreign portfolio outflows, elevated US Treasury yields, and geopolitical friction kept Indian equities under pressure as benchmark indices headed for their longest weekly slump in 25 years. Domestic stock benchmarks remained on the back foot on the morning of Thursday, October 1, with benchmark indices trading lower as heavy foreign capital withdrawals dampened risk appetite across Dalal Street. By 9:50 AM, the BSE Sensex had retreated 102 points while the Nifty 50 was down 61 points. Earlier at the opening bell, the Nifty 50 dropped 0.34 percent to 22,543.7, and the Sensex shed 0.4 percent to 72,192.89, extending an ongoing rout that puts both gauges on track for their eighth consecutive weekly decline, the longest losing streak witnessed in 25 years. Relentless Foreign Outflows Weigh On Benchmarks The primary catalyst behind the persistent market slump remains relentless divestment by foreign portfolio investors. In Wednesday's trading session, foreign institutional players disposed of Indian equities worth Rs 10,148 crore, equivalent to roughly $1.06 billion. That single-day liquidation brought their cumulative divestments over the preceding five sessions to around $3.6 billion, pushing total net foreign sales for the calendar year to date to an eye-watering $27.8 billion. The selloff was equally intense throughout September, during which foreign institutions acted as net sellers across 15 out of 20 trading sessions. Surging US Yields And Volatile Crude Oil Dynamics An unfavorable global interest rate backdrop is compounding pressure on emerging market equities. The US 10-year Treasury yield finished at 5.17 percent on September 25. Elevated returns on safe-haven American sovereign paper reduce the attractiveness of emerging market equities for international fund managers, spurring capital reallocation toward dollar-denominated assets and mounting sustained depreciation pressure on the Indian rupee. Energy markets have provided an additional layer of complexity. Brent crude futures eased to around $98 per barrel following statements from Tehran indicating it had received Washington's response regarding its latest ceasefire proposal. However, earlier declarations from US President Donald Trump rejecting the proposal have subdued expectations of any imminent diplomatic resolution, leaving broader geopolitical uncertainties unresolved. Weekly And Annual Losses Mount So far this week, the Nifty 50 has shed roughly 2.6 percent, while the Sensex has contracted by 2.3 percent. These weekly retreats follow a challenging September in which the Nifty dropped approximately 5.7 percent. On an annual comparison, the Sensex is down 10.5 percent year on year, and the Nifty has retreated around 8.9 percent over the same span, highlighting the protracted nature of the market correction. Sector And Stock Movements Across The Bourse Prominent heavyweight stocks exhibited weakness immediately from the opening bell on Thursday. Bajaj Auto and Max Healthcare fell by as much as 3 percent during initial trades. This followed Wednesday's subdued finish, where the Sensex closed down 48.78 points at 72,480.29 and the Nifty fell 95.75 points to 22,620.45. Top laggards on the Nifty in that session included Apollo Hospitals, Max Healthcare, and BSE. Broad sectoral performance saw healthcare, pharmaceuticals, consumer durables, and metals lead the declines, whereas real estate, private banking counters, and media managed modest advances. Global Markets Deliver Mixed Signals International equity benchmarks offered divergent cues for domestic market participants. On Wall Street, the Dow Jones Industrial Average dropped about 0.9 percent, and the S&P 500 declined 0.3 percent, marking its third monthly loss within the past four months. Conversely, the tech-heavy Nasdaq Composite gained approximately 0.2 percent. In Asia, trading mood was generally constructive on Thursday, underpinned by buying interest in technology and semiconductor counters linked to artificial intelligence. Japan's Nikkei 225 surged 2.4 percent, South Korea's Kospi advanced 0.5 percent, Hong Kong's Hang Seng added 0.4 percent, and the Shanghai Composite in mainland China edged up 0.3 percent. In contrast, Australia's ASX 200 bucked the regional trend, skidding 1.7 percent. Technical Setups And Key Levels To Track Analyzing technical formations across index charts, Shrikant Chouhan, Head Equity Research at Kotak Securities, noted that after a muted opening, indices encountered strong resistance near 22,800 and 73,000. That resistance triggered a sharp intraday turnaround, seeing the Nifty and Sensex tumble nearly 200 points and 650 points respectively from their session highs. Chouhan highlighted that the Nifty formed a bearish candle on the daily chart, while intraday timeframes continue to display a lower-top pattern that justifies a cautious near-term outlook. Outlining immediate price thresholds, Shrikant Chouhan said, "For day traders, the 22,600-22,550 / 72,400-72,200 levels remain an important support zone." He added that holding above this threshold could trigger a technical bounce toward 22,750-22,800 on the Nifty and 72,800-73,000 on the Sensex. Conversely, a decisive breakdown below 22,500 or 72,000 could accelerate institutional selling, potentially pulling the indices down to 22,300-22,150 and 71,400-71,000 respectively. Thursday's session wraps up trading for the week, as Indian financial markets will observe a holiday on Friday in observance of Gandhi Jayanti. Regular market activity will resume on Monday, October 5. What this means for you The continuous eight-week correction in Indian equity benchmarks directly impacts retail portfolio valuations and short-term trading risk. • Impact on retail investors: Equity portfolios and mutual fund NAVs are likely to see temporary erosion during this correction phase. Long-term investors should maintain disciplined systematic investment plans rather than liquidating holdings in panic. • Key support thresholds: Day traders must closely monitor the 22,500 mark on Nifty and 72,000 on Sensex. A decisive break below these levels could trigger deeper corrections, making tight risk controls essential. • Holiday closure schedule: Financial markets will remain closed on Friday for the Gandhi Jayanti holiday, making Thursday the final session of the trading week. Traders will need to wait until Monday, October 5, before normal market operations resume. • Currency and import costs: Heavy foreign capital outflows continue to put downward pressure on the Indian rupee. A softer currency can elevate import costs for businesses and increase expenses for foreign travel and education. Why this happened The sharp weakness in domestic equities has been driven by a confluence of massive foreign institutional selling and unfavorable macroeconomic cues abroad. • Massive institutional liquidation: Foreign portfolio investors pulled $3.6 billion over five consecutive sessions and offloaded $27.8 billion year to date. This continuous outflow has drained liquidity and overwhelmed buying support from domestic players. • Spike in US Treasury yields: The US 10-year Treasury yield closing at 5.17 percent made risk-free sovereign debt in the US far more lucrative than emerging equities. Consequently, foreign capital shifted toward dollar assets, dampening risk appetite for Indian shares. • Geopolitical friction and crude volatility: Brent crude trading near $98 per barrel amidst ongoing diplomatic friction between Washington and Tehran has sustained inflation concerns and elevated geopolitical risk. • Technical resistance failures: Both benchmark indices faced strong chart barriers around 22,800 on Nifty and 73,000 on Sensex. Failing to sustain above those levels prompted sharp intraday reversals and formed bearish daily candlestick patterns. Questions & Answers 1. How much did the Sensex and Nifty fall during morning trade on Thursday? At 9:50 AM on Thursday, the BSE Sensex was down 102 points while the Nifty 50 was down 61 points. 2. What is the primary factor driving the stock market decline? Heavy, persistent selling by foreign portfolio investors alongside elevated US Treasury yields is driving the market downturn. 3. How much capital did foreign investors withdraw on Wednesday and over the past five sessions? Foreign investors sold Indian shares worth Rs 10,148 crore (about $1.06 billion) on Wednesday and approximately $3.6 billion over the preceding five sessions. 4. What level did the US 10-year Treasury yield reach? The US 10-year Treasury yield closed at 5.17 percent on September 25. 5. Where are Brent crude oil prices currently trading? Brent crude futures are hovering around $98 per barrel. 6. What are the crucial technical support levels for the Nifty and Sensex? The key support zone sits at 22,600-22,550 on the Nifty and 72,400-72,200 on the Sensex, with decisive breakdown levels at 22,500 and 72,000. 7. When is the next market holiday and when will trading resume? Markets are closed on Friday for the Gandhi Jayanti holiday, and regular trading will resume on Monday, October 5. https://trendkia.com/en/market/dalal-street-para-lagatara-athaven-haphte-bikavali-ka-dabava-sensex-aura-nifty-men-giravata-jari-40988 TrendKia — Har trend, sabse pehle.