Eight‑week losing streak sets a 25‑year record India’s equity markets have now posted eight straight weeks of losses, the longest such run since 1999. On 1 October the benchmark Sensex slipped 571 points and the Nifty fell 0.88%, extending a four‑day losing streak.
Foreign investors pull out, domestic funds step in Research from Bajaj Broking shows FIIs were net sellers of **Rs 349.7 bn** in the last week, according to provisional exchange data. By contrast, domestic institutional investors (DIIs) were net buyers of **Rs 334.6 bn**.
### September snapshot * FIIs withdrew **Rs 440.1 bn** from Indian equities in September 2026. * DIIs injected **Rs 760.3 bn** during the same month. * In dollar terms, FIIs recorded **$4.1 bn** of outflows in September, taking their calendar‑year total to **$28.3 bn**. DIIs invested **$8 bn** in September and **$67.8 bn** year‑to‑date.
Market backdrop: global and domestic pressures Motilal Oswal notes that the Nifty’s **6.1%** fall in September was the second consecutive monthly decline and the second‑steepest drop since October 2024. The index is down **13.4%** in calendar‑year 2026.
Broad‑based weakness was evident across sectors, with Technology, Financials (excluding banks), Automobiles, PSU Banks and Capital Goods all posting declines in September.
Analysts point to three intertwined factors: 1. **Elevated US Treasury yields** – higher global financing costs dampen risk appetite. 2. **Firm Brent crude prices** – rising oil adds inflationary pressure and hurts the rupee. 3. **Geopolitical uncertainty** – the outlook of a possible Iran peace deal and ongoing US‑Iran tensions keep investors cautious.
Domestic concerns such as a depreciating rupee, lingering inflation and a fragile macro outlook further compound the sentiment challenge.