Indian Stock Market Suffers Worst Losing Streak in 25 Years

The BSE Sensex and NSE Nifty 50 indices experienced their longest losing streak in nearly 25 years, falling for five consecutive sessions to erase over Rs 6 lakh crore in market capitalization. On Thursday, the Sensex closed 0.79% lower at 71,909.70, while the Nifty 50 dropped 0.91% to 22,282.75, breaching critical technical support levels at 22,500 and 22,400.

This downturn is driven by record foreign portfolio outflows, totaling Rs 2,60,302 crore year-to-date—a 57% increase over 2025. These withdrawals are fueled by US 10-year Treasury yields hitting a multi-year high of 5.31% and a lack of artificial intelligence catalysts compared to other emerging markets. Domestic pressure has mounted as the rupee approached 96 per dollar and Brent crude prices fluctuated near $100 per barrel, exacerbated by the US-Iran war.

While local investors provided a buffer by purchasing a net $60 billion this year, analysts remain divided. Morgan Stanley projects the Sensex could reach 89,000 by June 2027, but Goldman Sachs warns that earnings downgrades may not have bottomed. Further volatility is expected depending on the resolution of the US-Iran conflict and potential US tariffs targeting buyers of Russian crude. Additionally, a domestic drought threatens to offset consumption growth during the festive season.