Foreign capital is accelerating its withdrawal, and the Indian stock market is facing its worst losing streak in 25 years!

Indian stocks continued to be under pressure on Thursday. As of press time, the Nifty 50 was down 0.61% at 22,481.85 points, and the BSE Sensex was down 0.51% at 72,107.63 points. If both indices close lower this week, they will record their eighth consecutive week of declines—the longest losing streak in 25 years.

Meanwhile, Indian markets were closed on Friday for a local holiday. Hariselvan Radhakrishnan, founder and CEO of HST Wealth, said, "Today's trading reflected cautious portfolio adjustments ahead of the long holiday, given the market closure tomorrow."

Foreign investors have intensified their selling pressure, with net selling reaching a record high for the year.

Data shows that on September 30, foreign investors net sold approximately $1.06 billion (about 101.48 billion rupees) worth of Indian stocks.

In comparison, foreign investors sold a total of approximately $3.6 billion over the previous five trading days, averaging about $720 million per day. Wednesday's single-day sell-off was significantly larger than this average.

Cumulatively, foreign investors have sold a net $27.8 billion since the beginning of the year, setting a new record.

Hariselvan Radhakrishnan noted: "Continued capital outflows, coupled with high borrowing costs, continue to weigh on market sentiment—although the recent decline in oil prices has provided some buffer."

Friday's market closure meant that investors were unable to adjust their positions promptly following overnight risk events, which to some extent exacerbated the cautious sentiment during Thursday's trading session.

Brent crude futures fell to around $97 a barrel on Thursday after Iran said it had received a response from the United States to its latest ceasefire proposal, which President Trump had publicly rejected several days earlier. The decline in oil prices provided some breathing room for a market recently pressured by soaring energy prices.

Sector divergence: Automobiles led the decline, while IT bucked the trend and strengthened.

Of the 16 major sectors, 11 recorded declines.

The automotive sector saw the most significant decline, with the automotive index falling 2.4%. Bajaj Auto plunged 6% in a single day, while Mahindra & Mahindra fell 2.4%, both companies reporting declining domestic sales.

The small-cap index and the mid-cap index fell by 0.6% and 0.3%, respectively.

The IT sector bucked the trend, rising 0.9%. Previously released data showed that U.S. inflation rose less than expected in August, reducing the probability of a Federal Reserve rate hike this month and boosting sentiment towards technology stocks.

In individual stock news, Kotak Mahindra Bank rose 3%. The bank announced the appointment of Anup Kumar Saha as its new CEO for a three-year term, succeeding Ashok Vaswani.

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