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It appears that control of the Indian stock market has been fully taken over by the bears, as headwinds continue to hit Dalal Street one after another, giving investors much-needed reasons to liquidate stocks at a much faster pace and dragging the headline indices to multi-month lows. While other key Asian markets are hitting record highs in 2026, domestic equities are struggling to find momentum. Even as mutual funds, largely backed by retail investors, continue to offset the selling pressure from FPIs, the markets have still slipped into bear market territory. On Thursday, the Nifty 50 slumped 1.64%, marking its biggest one-day decline in 10 weeks. Although it recovered part of its losses in today's trade, it could not cut down the weekly losses. It closed last week with a cut of 0.88%, extending its weekly losing streak to seven. This was the index's biggest sustained decline since 2020, indicating weak sentiment across the broader market. What's more concerning for the bulls is that the Nifty has recorded seven-week losing streaks only four times in the last 25 years. Barring 2020, the index logged a seven-week decline in 2008 and twice in 2021, and in the same year, it registered one of its longest losing runs after falling for nine consecutive weeks. Financials were the biggest drag on the markets last week on concerns that proposed insurance commission caps could hurt earnings. This came as an additional headwind for the markets at a time when sentiment was already weak amid surging crude oil prices. Crude oil prices have been a focal point for markets since late February, when the US and Israel launched joint strikes on Iran, triggering a war in the Middle East. US and Iranian leaders exchanged barbs at the UN General Assembly this week, sending Brent crude prices back above $100 a barrel. Adding to concerns, the elevated oil prices have added pressure on global bonds, pushing yields to multi-decade highs. The elevated yields have raised fears of further monetary tightening by major central banks, which pressured domestic technology stocks, while limited AI exposure also impacted the sector. “Brent crude stayed elevated near $105 a barrel despite retreating from its recent peak, while the US 10-year Treasury yield remained around 5.2%, keeping pressure on global financial conditions,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth. Meanwhile, with recent rate hikes by the US Federal Reserve, Bank of Japan, and European Central Bank, concerns mounted that the RBI would take tightening measures at its October meeting, as inflation remained above the central bank's target range. Analysts expect the markets to breathe, as the sustained crash could make valuations attractive, while they also believe that strong domestic growth could act as an external shock absorber. Ajit Mishra, SVP – Research, Religare Broking, said, “The recovery remained measured as investors continued to monitor elevated global yields, crude oil prices, and persistent foreign selling. Besides, oversold positions in heavyweights across sectors provided some support and helped limit further downside.” He pointed out that the 23,300–23,350 zone is likely to act as the immediate hurdle, followed by the broader resistance around 23,600, while 23,000 remains the key near-term support. “With the trend still weak and global macro risks elevated, volatility is likely to remain high, and stock-specific opportunities may continue to emerge selectively.” Vinod Nair, Head of Research, Geojit Investments Limited, noted that the ability of benchmark indices to sustain above the psychologically important 23,000 level reflects domestic resilience and support from strong domestic liquidity. “While elevated oil prices and global yields may continue to temper risk appetite in the near term, improving valuations and resilient domestic growth prospects are encouraging selective accumulation, helping the market absorb external pressures more effectively,” he said. Disclaimer: We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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