Indian benchmark shares post longest weekly losing run in 25 years
INDA•Indian benchmark shares posted an eighth straight weekly loss, their longest losing streak in 25 years, as record foreign selling, crude near $100 a barrel and rising global yields weighed on markets. The Nifty 50 fell 3.1% and the Sensex 2.7% for the week.
1. Eight-week losing streak
The Nifty 50 fell 3.1% and the Sensex dipped 2.7% in a holiday-shortened week, extending their eight-week losses to 8.7% and 8.4%, respectively. The benchmarks also posted their steepest weekly declines in more than six months and four months, respectively.
2. Selling and sector losses
Foreign outflows reached a record $27.8 billion so far this year, while Brent crude remained above $100 a barrel and the US 10-year Treasury yield hit its highest level since mid-June 2007. Fifteen of 16 major sectors lost ground for the week; auto shares fell 5.9% and consumer durables dropped 6.2%. Information technology was the only sector to gain, rising 0.5% for the week.
3. Rate and market outlook
A Reuters poll of economists expects the Reserve Bank of India to raise rates by 25 basis points to 5.50% on October 7, its first increase since 2023. The rupee hit a two-month low, and the benchmark 10-year yield rose to its highest level in more than two years.
