Nifty Sheds 2,149 Points In Relentless 8-Week Slide, Is India’s Benchmark Heading Towards A Bear Market?

Mumbai: Over the past eight weeks, India's benchmark Nifty 50 index has plummeted by 2,149 points, marking its longest losing streak in 25 years and signaling potential entry into a bear market. The index has slipped more than 8.7 percent over the last nine weeks, with a 3 percent drop this week alone. The Nifty is now 15 percent below its record high of 26,373, set in January. This 20 percent decline from the peak is typically viewed as the beginning of a bear market.

September proved particularly challenging for investors, with the Nifty falling 6.1 percent, marking its second consecutive monthly decline. Foreign investors have pulled out more than Rs 2.6 lakh crore from Indian equities in 2026, with Foreign Institutional Investors (FIIs) selling Rs 45,536 crore through stock exchanges alone in September.

Technical indicators paint a picture of weakness, with around 81 percent of Nifty 500 stocks trading below their 50-day simple moving averages. The brokerage firm sees a crucial support level at around 22,400, where multiple technical indicators converge. For a significant rebound, the Nifty needs to surpass 23,080, the previous week's high. However, it has failed to do so for seven consecutive weeks.

Global risks continue to weigh on the market, with the US 10-year Treasury yield hovering near 5.3 percent, putting pressure on emerging markets and possibly sustaining high levels of foreign selling. Brent crude oil has dropped below USD 100 per barrel to around USD 98, providing some relief. However, oil prices remain volatile, influenced by US-Iran tensions and events near the Strait of Hormuz.

Despite the market downturn, analysts maintain that India's underlying economic growth remains robust, although crude oil, inflation, global yields, and geopolitical tensions remain key risks.