Indian Benchmark Shares Record Longest Weekly Losing Streak in 25 Years

Indian benchmark equity indices closed out a fifth consecutive week of declines on Thursday, marking the longest weekly losing streak in a quarter-century, according to Reuters data. The Nifty 50 and the S&P BSE Sensex extended a selloff that has persisted through September, wiping out gains accumulated earlier in the year and pushing both gauges into negative territory for 2026.

The losing run, which began in late August, represents the most sustained period of weekly declines since 2001, a period that coincided with the aftermath of the dot-com bubble burst and a global economic slowdown. During the current streak, the Nifty 50 has shed roughly 6% from its peak, while the Sensex has retreated a similar magnitude, pressured by persistent foreign portfolio outflows and concerns over slowing domestic earnings growth (Reuters India).

Market participants attributed the duration of the decline to a confluence of global and local factors. Elevated U.S. Treasury yields have reduced the relative appeal of emerging market equities, triggering sustained selling by foreign institutional investors who have pulled billions of dollars from Indian equities over the past month. Domestically, a slower-than-expected pickup in corporate earnings for the June quarter and cautious commentary from management teams regarding the September quarter have dampened risk appetite (Google News India).

The breadth of the selloff has been notable, with mid-cap and small-cap indices—often seen as barometers of domestic retail sentiment—also posting weekly losses, though their declines have been comparatively shallower than the large-cap benchmarks. Sectorally, financials and information technology stocks, which carry the heaviest weight in the indices, have led the downturn, reflecting sensitivity to interest rate trajectories and global demand outlook respectively.

While the five-week slide matches the duration of the 2001 streak, analysts noted that the percentage decline remains significantly smaller than the drawdowns witnessed during the global financial crisis in 2008 or the initial COVID-19 shock in 2020. The market's price-to-earnings multiple has compressed to near its long-term average, a level that historically has attracted value buyers, though the timing of a reversal remains contingent on the trajectory of global liquidity conditions and the upcoming domestic earnings season.