- Nifty 50 extended a seven-week losing streak, its longest since 2008, amid market concerns
- Nifty closed Friday up 0.34% at 23,140 but fell nearly 1% over the week to a low since April 2026
- US 10-year Treasury yield hit 5.225%, the highest since 2007, boosting borrowing costs globally
The Nifty 50 extended its losing streak to seven consecutive weeks on Friday, marking its longest weekly losing run since 2008, as elevated crude oil prices, rising bond yields and inflation concerns continued to weigh on investor sentiment. The index, however, ended Friday's session in positive territory, gaining 0.34% at 23,140. The Sensex rose 0.43% to settle at 73,895. Nifty Bank gained 141 points to 55,580, while the Nifty Midcap 150 advanced 15 points to 22,470.
Despite Friday's gains, the Nifty declined nearly 1% during the week and touched its lowest level since April 2026. The latest seven-week losing streak is the longest since 2008, although the index's longest-ever weekly losing streak was nine weeks in 2001.
Historical data shows that the Nifty previously recorded a seven-week losing streak between May 19 and June 30, 2008, during which the index fell 22.1%, from 5,157 to 4,016. The Nifty also witnessed six-week losing streaks in 2012, 2013 and 2025. Between June 30 and August 4, 2025, the index fell 5.1% over six weeks.
In the current streak, the Nifty has fallen around 6.1%, from 24,573 on August 3 to 23,063 as of September 25.
Global Bond Yields Rise
Global bond markets remained under pressure this week, with the 10-year US Treasury yield climbing to 5.225% late Thursday, its highest level since 2007. The 30-year Treasury yield also rose to 5.502%. The rise in US Treasury yields was driven by hawkish comments from Federal Reserve Governor Michael Barr, persistently elevated energy prices amid the Iran war and stronger purchasing managers' data.
Fed funds futures indicated around a 68% probability of a rate hike in October, according to the CME FedWatch tool.
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Higher Treasury yields have also pushed up borrowing costs in the US. The 30-year fixed mortgage rate, which tracks the 10-year Treasury yield, rose to 7.45%, its highest level since 2024.
Oil, Inflation Concerns In Focus
Crude oil prices remained elevated despite a modest pullback on Friday. Brent crude was down 0.93% at $106.04 a barrel at last check.
For India, elevated crude prices remain a key concern given the country's dependence on oil imports. Higher crude prices can increase pressure on the import bill and inflation, while also affecting corporate margins and the broader macroeconomic outlook.
The combination of higher oil prices and rising global bond yields has therefore kept pressure on Indian equities, particularly interest-rate-sensitive sectors.
Financials, IT Face Selling Pressure
Financial stocks faced heavier selling during the week amid concerns that proposed insurance commission caps could weigh on earnings and alter the economics of distribution businesses. IT stocks also remained under pressure, with investors concerned about higher US interest rates and the potential impact of artificial intelligence-related disruption on the sector.
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