Nifty Logs Longest Weekly Losing Streak Since 2020 as Crude Tops $105; Sensex Ends at 73,896 

Mumbai, Sept 26: Indian equity benchmarks extended their losing streak to a seventh consecutive week — the longest since the Covid-19 pandemic period — as elevated crude oil prices, surging US Treasury yields and persistent foreign fund outflows continued to weigh on investor sentiment, even as a modest recovery on Friday helped the Nifty 50 reclaim the 23,100 mark and the Sensex gain over 300 points. 

The Nifty 50 closed at 23,140.50, up 77.40 points or 0.34 per cent on Friday, while the Sensex settled at 73,895.74, higher by 315.20 points or 0.43 per cent. For the week, however, the Nifty fell 0.88 per cent and the Sensex declined 0.58 per cent, with the Nifty now having shed over 1,750 points from its early-August peak of 24,772. 

Crude Above $105 and US Yields at 5.2% Keep Bulls at Bay 

Friday’s recovery was narrow and tentative. Brent crude, despite easing around 1 per cent to $105.40 a barrel, remained well above $100, as markets processed two competing scenarios: further Houthi attacks on Saudi infrastructure versus a potential diplomatic off-ramp after reports emerged of US-Iran negotiations over a phased reopening of the Strait of Hormuz. WTI held in the $93–$94 range. 

Also Read: How to invest in crude oil

The US 10-year Treasury yield remained near 5.2 per cent, close to its highest level since 2007, keeping pressure on global risk appetite. The 30-year yield rose to 5.502 per cent, its highest since 2004. Markets were pricing an approximately 68 per cent probability of a Federal Reserve rate hike in October. 

Domestically, the rupee appreciated 19 paise to close at 95.80 against the dollar, drawing some relief from the modest pullback in crude prices. For the week, the currency traded within a range of 95.57–95.97 and ended largely flat. 

Spot gold briefly climbed above $4,314 per ounce during intraday trading on September 25, but trimmed gains to trade just above $4,295 during the evening session, up 0.49 per cent in 24 hours, though prices remained 1.76 per cent down over the past week. Domestically, gold traded between ₹1,50,000 and ₹1,54,400 through the week, declining over 2 per cent, with the ₹1,50,000 mark emerging as a key support level. 

Thursday’s 1,247-Point Sensex Crash Triggers 22.6% VIX Spike 

The week’s sharpest sell-off came on Thursday, September 24, when the Sensex plunged 1,247.71 points or 1.67 per cent to 73,580.54, and the Nifty 50 fell 383.70 points or 1.64 per cent to 23,063.10 — the sharpest single-day fall since July 8. 

The India VIX, the market’s fear gauge, surged 22.61 per cent on Thursday to close at 12.69, after opening at 10.34 and hitting an intraday high of 13.22. The spike reflected heightened uncertainty over the US-Iran conflict, elevated crude prices and rising global bond yields. By Friday, the VIX cooled 4.18 per cent to close at 12.13, after opening at 12.68 against the previous close of 12.69, as easing crude oil prices and indications of possible US-Iran de-escalation provided some relief. 

FIIs Sell ₹7,620 Crore as DIIs Buy ₹11,232 Crore 

Foreign institutional investors remained net sellers for a fifth consecutive week, offloading ₹7,620 crore of Indian equities, according to NSE data. On Thursday alone, FIIs sold shares worth ₹5,027.36 crore — their heaviest single-day sell-off in September — while DIIs bought equities worth ₹4,301.18 crore. 

For the week, DIIs net purchased ₹11,232 crore, extending their buying streak to 24 consecutive sessions since August 11, largely driven by steady SIP inflows into mutual funds. Month-to-date, FIIs sold a net ₹7,041 crore while DIIs bought ₹36,219 crore. On a year-to-date basis, FIIs have sold a net ₹3,73,891.7 crore, while DIIs have bought ₹6,13,283.22 crore. 

Banks Drag as Insurance Commission Cap Proposal Hits Financials 

Banking and financial stocks faced heavier selling during the week after the Insurance Regulatory and Development Authority of India (IRDAI) proposed tighter insurance commission caps on September 23, raising concerns about earnings for lenders with insurance exposure. Banks and financials declined around 2 per cent on Thursday. 

The proposed framework includes a five-year glide path to bring life insurers’ expenses of management (EoM) down, with commission limits linked to product complexity. For individual non-linked and linked products, commissions for intermediaries are proposed in the range of 5–20 per cent, depending on the premium payment term. 

ICICI Bank was the biggest drag on the Nifty 50 on Friday, while HDFC Bank rose 1 per cent amid expectations of an announcement on its next chief executive officer. Axis Bank was the biggest contributor to the Nifty 50’s gains on Friday, adding 22.49 points to the index, followed by HDFC Bank with a 22.38-point contribution and Mahindra & Mahindra with 10.17 points. 

The most significant stock-specific development occurred on 24 September, when proposed changes to insurance distribution regulations triggered a sharp fall in PB Fintech. Shares of PB Fintech plunged 36 per cent, wiping out more than ₹31,000 crore from its market capitalisation, with the stock hitting a fresh 52-week low of ₹1,285.20 per share. 

Nifty Realty Gains 0.92% as IT Index Slips on US Rate Concerns 

On the sectoral front, eight of the 11 key sectoral indices ended in positive territory on Friday. The Nifty Realty index emerged as the top gainer, rising 0.92 per cent, with DLF gaining more than 1.8 per cent. The Nifty Auto index rose 0.89 per cent, while the Nifty Media index declined 0.23 per cent. 

For the week, information technology stocks were the biggest sectoral laggards, with the sectoral index falling 2 per cent. The Nifty IT index fell for a sixth straight session on Friday, declining 0.6 per cent, as crude prices above $100 a barrel intensified inflationary worries and bolstered bets on multiple Federal Reserve rate hikes. Infosys and Tata Consultancy Services were down 2 per cent and 0.5 per cent respectively, emerging as key drags on the Nifty 50. 

Fast-moving consumer goods was the only major sectoral pocket to post a stronger performance for the week, gaining 1 per cent. The Nifty Midcap index declined 84 points to 60,906 on Friday, while the Nifty Bank rose 142 points to 55,580. 

Nifty Metal Surges 2.40% on Four-Year High Steel Prices 

The Nifty Metal index gained 2.40 per cent to close at 13,302.35 on Wednesday, September 23, as investors focused on elevated commodity prices and a mining policy update from the central government. Rebar prices recovered to ₹56,800 per tonne in September from ₹48,850 per tonne in June, while HRC prices climbed to a four-year high of ₹62,000 per tonne on September 1. 

The World Steel Association confirmed that India remains the world’s fastest-growing major steel market, with demand projected to expand by 7.4 per cent in 2026 and accelerate by 9.2 per cent in 2027. India produced approximately 67.4 million tonnes of finished steel between April and August 2026, up 3.7 per cent year-on-year. 

Pharma stocks also rallied during the week, with the Nifty Pharma index rising over 3 per cent in three sessions through September 21, led by Mankind Pharma and Wockhardt. The BSE Healthcare index rallied over 1 per cent in Monday’s trade and hit a fresh high, outperforming the market by soaring 25 per cent in FY27 against a near 4 per cent rise in the BSE Sensex. 

Reliance Eyes ₹10,000 Crore Bond Sale at 7.90% 

Reliance Industries plans to raise approximately ₹10,000 crore ($1.04 billion) through a sale of 10-year notes at an annual coupon of 7.90 per cent, according to bankers. The oil-to-telecom conglomerate’s shares fell below their previous low of ₹1,232.35 touched on September 21, declining 2 per cent to a 17-month low on September 24. RIL’s share price has underperformed the market by plunging 22 per cent in calendar year 2026. 

HDFC Bank shares extended their decline on Thursday, falling more than 25 per cent in 2026, as the market awaited clarity on the bank’s next chief executive officer. The stock had touched a 52-week low of ₹681.90 on September 11. UBS added HDFC Bank to its ‘APAC Key Call List’ with a price target of ₹1,000, implying significant upside from the stock’s closing price of ₹731.20 on September 18. The bank’s shares recovered over 8 per cent in seven days following IRDAI’s draft on insurance payouts. 

NSE Lists After ₹22,562 Crore IPO 

Another major market event during the week was the listing of the National Stock Exchange of India shares. The exchange’s ₹22,561.57 crore initial public offering — entirely an offer for sale — listed on September 24, with shares debuting at ₹1,800 on BSE, a premium of 0.84 per cent over the issue price of ₹1,785. The IPO saw 5.71 times subscription, with the QIB portion subscribed 12.68 times. The listing occurred on the same day as the sharp equity-market sell-off, making it an important primary-market event within an otherwise difficult secondary-market session. 

IPO Activity Expands as Four Issues Open 

Primary-market activity remained busy on 25 September, when four IPOs opened for subscription. The issues included Orient Cables, Runwal Enterprises, German Green Steel & Power and AceVector, the parent of Snapdeal. Combined, the four issues were reported to seek approximately ₹1,776 crore. 

Orient Cables fixed its price band at ₹258–₹272 per share for a ₹552 crore issue, comprising a ₹320 crore fresh issue and ₹232 crore offer for sale. The issue opened on 25 September and was scheduled to close on 29 September. 

Runwal Enterprises opened with a price band of ₹290–₹305, a lot size of 49 shares and an issue size of ₹500 crore. Its subscription period runs from 25 to 29 September. 

AceVector, the parent of Snapdeal, set a price band of ₹30–₹32 for its ₹420 crore IPO, valuing the company at ₹1,741 crore (around $182 million) at the upper end of the range. The issue comprised a fresh issue of ₹287 crore and an offer for sale of ₹133 crore. Its public subscription began on 25 September. 

Manika Plastech also listed during the week. On 21 September, its shares listed at ₹43, the IPO price, on both BSE and NSE. 

Moneyview IPO Opens for ₹1,091.68 Crore Subscription 

Moneyview Limited’s initial public offering opened for subscription on September 24, with a total issue size of ₹1,091.68 crore, comprising a fresh issue of ₹750 crore and an offer for sale of ₹341.68 crore. The price band was set at ₹32 to ₹34 per share, with a lot size of 441 shares. The IPO is scheduled to close on September 28, with listing tentatively set for October 1. The company intends to utilise the net proceeds towards investment in its NBFC subsidiary, Whizdm Finance, for augmenting its capital base and driving growth in loan disbursals. 

SEBI Changes Market Rules on 24 September 

SEBI’s board meeting on 24 September produced several regulatory decisions with implications across the capital market. The measures included changes concerning foreign portfolio investors’ participation in non-agricultural commodity derivatives and a new route allowing portfolio managers to invest in mutual funds, alongside changes affecting accredited investors and market intermediaries. 

A new mutual-fund investment route under portfolio management services carries a minimum ticket size of ₹25 lakh, according to reports on the board decisions. The regulator also approved changes relating to settlement mechanisms and market-intermediary frameworks. 

These developments arrived during an already volatile session, making regulatory news an important domestic component of the week’s market narrative. 

PMI Rises to 56.5 as Growth Data Improves 

India’s September flash Composite PMI rose to 56.5 from 54.3 in August, reaching its highest level since June. Manufacturing PMI increased to 55.7 from 52.8, while services PMI rose to 55.8 from 54.1. The data were released on 23 September and showed stronger demand and output, although export growth and hiring remained comparatively softer. 

The manufacturing improvement was particularly notable because output and new orders strengthened and goods producers resumed hiring. However, the preliminary composite reading suggested that quarterly growth momentum remained below the April-June period. Input-cost inflation also eased to its lowest level since January, while selling-price inflation remained broadly unchanged. 

The data therefore provided a domestic economic counterpoint to the financial-market pressures created by oil, yields and geopolitical developments during the same week. 

CCI Clears Fairfax’s Additional Stake Buy in IIFL Capital 

The Competition Commission of India (CCI) approved the acquisition of additional equity share capital of IIFL Capital Services Limited by FIH Mauritius Investments Ltd. on September 23. The acquirer, a wholly owned subsidiary of Fairfax India Holdings Corporation, will subscribe to fresh equity shares through a preferential issue and may also undertake secondary purchases from promoters. IIFL Capital offers integrated solutions in wealth management, investment banking, broking services, institutional equities and research for high net-worth clients. 

Dabur India received National Company Law Tribunal (NCLT) approval on September 25 for its merger with ayurvedic hair care brand Sesa Care Private Limited. The tribunal sanctioned the scheme of amalgamation at a hearing held on September 24, bringing Sesa Care under Dabur’s portfolio. 

India VIX Rises Then Falls as Markets Stabilise 

Volatility increased sharply on Thursday. India VIX rose by about 22.61 per cent to close at 12.69 as crude prices climbed, US yields increased and financial stocks weakened. The rise coincided with the Nifty falling below 23,100. 

On Friday, the volatility index moved in the opposite direction. India VIX closed at 12.13, down 0.53 points or 4.18 per cent, after opening at 12.68 against the previous close of 12.69. The decline coincided with the modest recovery in benchmark indices and easing crude prices. 

The sequence was therefore clear during the week: lower volatility accompanied the early recovery, volatility increased sharply during Thursday’s sell-off, and it moderated again on Friday. 

Welspun Corp Surges on Largest-Ever $412.5 Million Order 

Welspun Corp gained 4.91% to close at ₹2824.40 on Friday after the steel pipe manufacturer secured its largest-ever order worth $412.5 million (approximately ₹4,000 crore) for high-frequency-induction-welded (HFIW) pipes from its US facility. The order lifted Welspun’s global order book to a record $4.7 billion (around ₹45,000 crore) and is scheduled to be executed during FY28 and FY29. 

Among mid-cap stocks, Kaynes Technology, Supreme Industries, Indian Renewable Energy Development Agency (Ireda), Blue Star and Manappuram Finance were among the notable gainers during the week. Hospital stocks remained under pressure, with Max Healthcare Institute and Fortis Healthcare declining 3–5 per cent. PB Fintech fell 4 per cent, while TurtleMint dropped 20 per cent.  

Multi Commodity Exchange of India declined 3 per cent as investors booked profits after Sebi approved foreign portfolio investors for trading in non-agricultural commodity derivatives. 

Global Central Banks Turn Hawkish as Fed Hikes to 3.75–4.00% 

The US Federal Reserve raised its benchmark interest rate by 25 basis points on September 16, taking the federal funds target range to 3.75–4.00 per cent in a unanimous 12–0 decision — its first rate hike since July 2023. Fed officials projected another hike before the end of 2026, with the median projection for the federal funds rate rising to 4.1 per cent from 3.8 per cent in June. 

The European Central Bank raised rates by 25 basis points on September 10, taking its deposit rate to 2.50 per cent, while the Bank of Japan raised its policy rate by 25 basis points to 1.25 per cent on September 18 — its highest level in 31 years. The Bank of England held its Bank Rate at 3.75 per cent but with a notably hawkish 6–3 vote. 

Motilal Oswal Financial Services noted that a tightening global interest-rate cycle could put additional pressure on Indian equities through higher bond yields, tighter financial conditions and weaker foreign investor flows, with an October rate hike becoming a meaningful possibility if crude prices remain elevated. 

The week’s market action reflected the interplay of elevated crude oil prices above $105, US Treasury yields near 5.2 per cent, and persistent FII selling offset by steady DII buying. The Nifty’s seventh consecutive weekly decline marks the longest losing streak since 2020, with 23,000 serving as a critical near-term support. Investors should monitor crude price trajectories, US-Iran diplomatic developments, and the RBI’s October policy meeting for directional cues. 

Source 

• https://www.nseindia.com/index-tracker/NIFTY%2050 

• https://www.nseindia.com/index-tracker/NIFTY%20BANK 

• https://www.niftyindices.com/indices/equity/sectoral-indices/nifty-auto 

• https://www.niftyindices.com/indices/equity/broad-based-indices/NIFTY-Midcap-100 

• https://www.niftyindices.com/indices/equity/broad-based-indices/nifty-smallcap-500 

• https://www.niftyindices.com/indices/equity/sectoral-indices/nifty-oil-and-gas-index 

• https://www.niftyindices.com/indices/equity/sectoral-indices/nifty-it 

• https://www.bseindia.com/sensex/code/16/ 

• https://www.nseindia.com/