The benchmark Sensex and Nifty fell as much as 1.64% and 1.78%, respectively, during intraday trading on Thursday, before paring more than half of their losses by the close. The Sensex declined 570.59 points, or 0.79%, to close at 71,909.70, its lowest level in 28 months (since February 14, 2024), slipping below the 72,000 mark for the first time in six months.

The Nifty fell 198.50 points, or 0.88%, to end the session at 22,421.95, its lowest closing level in six months.

On a weekly basis, the benchmark indices logged their eighth consecutive weekly decline, marking their longest losing streak in 25 years (since 2001). The Sensex slumped 2.69% during the week, its worst weekly performance since May 15, while the Nifty fell 3.11%, marking its steepest weekly decline since March 13.

Broader markets also came under pressure, with the BSE Midcap declining 3.65%, its sharpest weekly fall since March 13, extending its losing streak to five weeks. The BSE Smallcap index fell 2.64% during the week.

“Indian equities had a difficult, holiday-shortened week, with the benchmarks slipping below a key psychological level as a worsening global backdrop overwhelmed domestic support. With crude prices surging and US Treasury yields nearing two-decade highs on expectations of further Fed tightening, the narrowing India-US yield differential weakened the rupee,” said Vinod Nair, Head of Research, Geojit Investments.

Investors’ wealth eroded by Rs 15 lakh crore during the week, as the total market capitalisation of BSE-listed companies fell from Rs 481.9 lakh crore to Rs 467 lakh crore.

Foreign portfolio investors (FPIs) stepped up selling during the week, while steady buying by domestic institutional investors (DIIs) absorbed much of the outflow, cushioning but not arresting the decline.

FPIs sold shares worth Rs 33,882 crore ($3.5 billion), while DIIs bought shares worth Rs 33,455 crore during the week.

Sectoral weakness was concentrated in rate- and commodity-sensitive segments, with consumer durables, PSU banks, realty and metals coming under pressure. Auto stocks also witnessed sharper selling following weak wholesale sales data. IT was the sole sectoral gainer, benefiting from the depreciation of the rupee.

Within the Sensex pack, Kotak Mahindra Bank, which gained 4.07%, and Infosys, which rose 3.40%, were the only gainers. Titan Company led the losers, followed by Eternal, M&M, Maruti Suzuki and Power Grid.

Looking ahead, the RBI’s monetary policy decision will be the key domestic trigger, with pressure to support the rupee and contain imported inflation strengthening expectations of a rate hike, Nair said.

Indian markets will remain closed on Friday, October 2, on account of Gandhi Jayanti.