Indian stock markets extend losing run for eighth straight week amid weak global cues

Market Decline

Indian stock markets extended their corrective phase for the eighth consecutive week, closing sharply lower due to sustained selling pressure and weak global cues. The Sensex fell 1.52% on Monday and dropped another 0.79% on Thursday. Overall, the Sensex plunged 1,670.84 points, while the Nifty declined by more than 3%. On Thursday, benchmark indices dropped for the fourth consecutive session as foreign institutional investor selling, high bond yields, and surging crude oil prices hurt investor sentiment.

Index Numbers

The BSE Sensex fell 570.59 points to close at 71,909.70, touching a 52-week low of 71,292.88 during the session. The NSE Nifty 50 dropped 198.50 points to settle at 22,421.95. Meanwhile, GIFT Nifty ended up 0.59% at 22,624.50 on October 2. The Sensex briefly breached its April 2025 swing low of 71,425.01 before recovering slightly above it.

Analyst Views

Sachin Gupta from Choice Equity Broking noted that the Sensex remains below its 50-day and 200-day exponential moving averages, with the relative strength index slipping to 24.55 to indicate oversold momentum. Ajit Mishra from Religare Broking stated that the Nifty tested key long-term moving average supports around the 22,400 to 22,600 zone. Mishra added that while the broader trend stays negative, oversold conditions could trigger a near-term rebound if support levels hold.

Global Markets

US stocks ended higher on Friday as weak jobs data reduced rate hike expectations. The Nasdaq rose 1.2% to 27,190.86, the S&P 500 gained 0.7% to 7,722.72, and the Dow Jones Industrial Average added 0.5% to 51,176.46. In Asia, South Korea's Kospi fell 1.1% to 7,003.74 for the week due to profit booking in large technology stocks like Samsung Electronics and SK Hynix. Japan's Nikkei 225 fell 0.87%, though Resonac Holdings gained 8.71% to finish at 17,280. Taiwan's TAIEX rose 0.3% to a record high of 48,476.

Context

Stock markets naturally move in cycles of growth and correction driven by economic data, corporate earnings, and global capital flows. When foreign investors pull money out of emerging markets like India, benchmark indices often face heavy downward pressure. Technical indicators like moving averages and the relative strength index help traders gauge whether an asset has been oversold and might be due for a temporary price bounce.