Indian equities closed lower on Thursday to record an eighth consecutive weekly decline — the Nifty's longest losing streak since 2001, surpassing even the seven-week fall during the Covid-led market correction.
The benchmark ended the session 0.88 per cent lower, recovering nearly 195 points from its intraday low in late trade. The Nifty Bank index finished at 54,450.75, down 0.33 per cent, logging its sixth straight weekly fall with a 2.03 per cent drop for the week. Indian markets were closed on Friday on account of Gandhi Jayanti.
Broad-based weakness
The selling was broad. Among Nifty constituents, Infosys and HDFC Life were the top gainers, while Bajaj Auto and Maruti Suzuki were the biggest laggards. Sectorally, Nifty Auto and Nifty Metal led the declines, followed by FMCG, while Nifty IT relatively outperformed. The Nifty Midcap 100 fell 1.01 per cent and the Nifty Smallcap 100 lost 0.97 per cent.
Elevated US Treasury yields, firm crude oil prices and continued foreign outflows are weighing on sentiment. The US 10-year Treasury yield has climbed past its 2007 peak to 5.3 per cent — its highest since April 2002 — while the 30-year yield has risen to 5.6 per cent. With the Nifty's earnings yield now below the return on US government debt, analysts say a sustained recovery could remain difficult until global yields stabilise, crude eases and foreign outflows moderate.
What to watch
The RBI's monetary policy decision on October 7 — economists expect the central bank to begin a rate-hiking cycle — and the GST Council meeting on October 7, along with the earnings season, will be the key domestic triggers. Rupak De of LKP Securities noted the Nifty closed below its 200-week moving average for the first time since the Covid crash. Analysts peg immediate support at the 22,200–22,220 zone and resistance at 22,600–22,620.
Sources:
CNBC TV18: Nifty Outlook for October 5: 8-week losing streak puts focus on RBI policy, earnings and global yields
The benchmark ended the session 0.88 per cent lower, recovering nearly 195 points from its intraday low in late trade. The Nifty Bank index finished at 54,450.75, down 0.33 per cent, logging its sixth straight weekly fall with a 2.03 per cent drop for the week. Indian markets were closed on Friday on account of Gandhi Jayanti.
Broad-based weakness
The selling was broad. Among Nifty constituents, Infosys and HDFC Life were the top gainers, while Bajaj Auto and Maruti Suzuki were the biggest laggards. Sectorally, Nifty Auto and Nifty Metal led the declines, followed by FMCG, while Nifty IT relatively outperformed. The Nifty Midcap 100 fell 1.01 per cent and the Nifty Smallcap 100 lost 0.97 per cent.
Elevated US Treasury yields, firm crude oil prices and continued foreign outflows are weighing on sentiment. The US 10-year Treasury yield has climbed past its 2007 peak to 5.3 per cent — its highest since April 2002 — while the 30-year yield has risen to 5.6 per cent. With the Nifty's earnings yield now below the return on US government debt, analysts say a sustained recovery could remain difficult until global yields stabilise, crude eases and foreign outflows moderate.
What to watch
The RBI's monetary policy decision on October 7 — economists expect the central bank to begin a rate-hiking cycle — and the GST Council meeting on October 7, along with the earnings season, will be the key domestic triggers. Rupak De of LKP Securities noted the Nifty closed below its 200-week moving average for the first time since the Covid crash. Analysts peg immediate support at the 22,200–22,220 zone and resistance at 22,600–22,620.
Sources:
CNBC TV18: Nifty Outlook for October 5: 8-week losing streak puts focus on RBI policy, earnings and global yields
