Benchmark equity indices posted their eighth consecutive weekly loss, the longest declining streak in 25 years, as record foreign selling, crude oil prices near $100 a barrel, and a surge in global bond yields weighed on risk sentiment. The Nifty50 fell 3.1% in the holiday-shortened week, while the Sensex declined 2.7%, extending the indices’ eight-week losses to 8.7% and 8.4%, respectively. The Nifty recorded its steepest weekly decline in more than six months, while the Sensex posted its biggest weekly fall in more than four months. Indian markets will remain closed on Friday for Gandhi Jayanti.

Foreign outflows reached a record $27.8 billion so far this year, while Brent crude remained above $100 a barrel. The US 10-year Treasury yield rose to its highest level since mid-June 2007, increasing pressure on emerging-market assets. The rupee fell to a two-month low, while the benchmark 10-year gilt yield rose to its highest level in more than two years.

Indian shares extended losses for a fourth session on Thursday as firm energy prices, volatile bond yields and rate-hike concerns unnerved investors. The Sensex fell 570.59 points, or 0.79%, to 71,909.70, while the Nifty 50 declined 198.50 points, or 0.88%, to 22,421.95. Bajaj Auto, Maruti Suzuki India and Shriram Finance were the top Nifty 50 losers. The Nifty MidCap 100 and Nifty SmallCap 100 fell 1.01% and 0.97%, respectively.

Fifteen of the 16 major sectors recorded weekly losses. The Nifty Auto, Nifty Media, Nifty Metal and Nifty FMCG indices declined the most, while Nifty IT rose. The Nifty Auto index fell 5.9% and the Nifty Consumer Durables index lost 6.2% over the week as a weak monsoon intensified concerns over demand and consumer spending.

The rupee ended 0.5% lower at 96.3150 per US dollar on Thursday, its sharpest single day fall in more than two months, after breaching the key 96 level. Dollar sales by state-run banks helped limit the decline.

Indian government bond yields rose sharply as traders placed short bets ahead of the long weekend. Geopolitical uncertainty and caution ahead of next week's monetary policy review also kept traders from taking large positions. The benchmark 10-year gilt yield rose to 7.2263% intraday, its highest level since April 2024.

Top Movers of the Day

Kotak Mahindra Bank rose 0.5% to ₹418.95, after the RBI approved Anup Kumar Saha as the bank’s next Managing Director and CEO.

HDFC Life Insurance gained 2.46% to ₹534 driven by expectations that IRDAI will soon issue a consultation paper on rationalising insurance commission and distribution expenses without imposing harsh hard caps.

Infosys rose 3.50% to ₹1,028.90 as solid quarterly results from Accenture improved overall demand outlook for the IT sector and also as slower than expected US inflation figures reduced expectations of aggressive US interest rate hike.

Mphasis surged 4.73% to ₹2,256.30 as mid-cap IT stocks found renewed buying interest in a broadly weak market.

Inox India climbed 5.05% to ₹2,156.10 after the company reported strong quarterly order inflows from the industrial gas sector.

Rites advanced 0.94% to ₹211.02 after securing a major infrastructure consultancy contract from the government.

Bajaj Auto plunged 7.62% to ₹10,045 after reporting a 12% year-on-year decline in domestic two-wheeler sales for September 2026, missing market expectations.

Mahindra & Mahindra fell 3.18% to ₹2,856.30 following a 21% year-on-year decline in September tractor sales, which dragged the broader Nifty Auto index to a four-month low.

Grasim Industries declined 3.15% to ₹2,965.30, tracking the broader market correction amid elevated oil prices and persistent foreign institutional selling.

Apollo Hospitals dropped 1.70% to ₹8,080 amid profit booking and concerns over rising operational costs in its new healthcare facilities. Hospital stocks faced sell-off today following Supreme Court observations on retail markups for medicines and in-house pharmacies practices.

Vodafone Idea slipped 2.7% to ₹12.60 as investors reacted negatively to the telecom operator's latest subscriber churn data.

Futures & Options
The Nifty October 2026 futures closed at 22,520, a premium of 98.05 points over the Nifty 50's cash-market close of 22,421.95. The Nifty 50 fell 198.50 points, or 0.88%, during the session, while the NSE's India VIX, a gauge of expected near-term volatility, jumped 7.04% to 14.4.

Infosys, HDFC Bank and Kotak Mahindra Bank were the most-traded individual stock futures contracts in the NSE's F&O segment. The October 2026 F&O contracts will expire on 27 October 2026.

Bonds
Indian government bond yields rose further on Thursday, tracking higher US Treasury yields and a rise in Brent crude towards $100 a barrel. The benchmark 10-year gilt yield rose to an intraday high of 7.2263%, its highest level since April 2024, before ending at 7.2133%, up from 7.1879% at the previous close.

Brent crude rose towards $100 a barrel amid the ongoing impasse in US-Iran negotiations, prompting traders to trim gilt holdings on concerns that higher imported inflation could lead the Reserve Bank of India to deliver a larger quantum of rate hikes.

The market widely expects the Monetary Policy Committee to raise the repo rate by 25 basis points next week, while traders see cumulative rate increases of 50-75 basis points over the tightening cycle.

Forex
The Indian rupee fell to its weakest level in two months on Thursday as a surge in global bond yields and higher oil prices added pressure on the currency, which was already facing headwinds from foreign portfolio outflows. The rupee ended 0.5% lower at 96.3150 per US dollar, its sharpest single day fall in more than two months, after breaching the key 96 level. Dollar sales by state-run banks helped limit the decline. The 10-year US Treasury yield rose to 5.34%, its highest since 2002, increasing pressure on emerging-market currencies and assets. Brent crude reclaimed the $100-a-barrel mark after China suspended oil product exports, potentially tightening fuel markets already facing global supply shortages.

Crypto
The global crypto market remained in consolidation mode on Thursday as macroeconomic headwinds offset positive institutional developments. Bitcoin held around $83,690 after starting October near $84,000-$85,000 with support around the $81,200-$82,000 breakout zone. Ethereum traded near $2,693, remaining just below the $2,700 level, with technical support between $2,530 and $2,610.

Institutional optimism provided some support after Citigroup raised its 12-month forecasts to $113,000 for Bitcoin and $3,028 for Ethereum, citing strong crypto activity. However, elevated US Treasury yields and uncertainty over the interest-rate outlook continued to limit near-term upside momentum.

US Stock Futures
US stock futures were mixed early Thursday as Wall Street began a new trading month against a backdrop of surging Treasury yields. Dow Jones Industrial Average futures fell 92 points, or 0.2%, while S&P 500 futures rose 0.2% and Nasdaq-100 futures gained 0.51%. The 10-year US Treasury yield rose 1 basis point to 5.298%, while the 30-year yield climbed to 5.64%, with both yields trading near levels last seen in the early 2000s.

US Treasury Notes
US Treasury note yields surged on Thursday as the global bond sell-off intensified, pushing borrowing costs to their highest levels in more than two decades. The 10-year Treasury yield climbed to an intraday high of 5.34% and was last around 5.296%, while the 30-year yield rose to 5.67%, its highest level in more than 24 years. The 2-year yield also rose to around 4.91%.

The rise in yields reflected persistent inflation concerns, expectations of a higher-for-longer Federal Reserve rate path, elevated oil prices and growing concerns over government debt. The sharp increase in long-term yields added pressure across equity and credit markets as investors reassessed borrowing costs and the outlook for monetary policy.

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