Indian equity markets extended their decline on October 1, with the Sensex and Nifty facing continued pressure from foreign investor selling, elevated crude oil prices and rising bond yields. The broader market also remained weak, adding to concerns over the ongoing sell-off.
Foreign institutional investor (FII) selling remained one of the biggest pressure points. FIIs sold more than ₹10,148 crore of Indian equities on September 30, marking their fifth consecutive session of net selling. September’s cumulative FII outflow reached about ₹44,013 crore.
Rising global bond yields have also affected investor sentiment. Higher yields can make US fixed-income assets relatively more attractive and increase pressure on emerging-market investments. India’s own bond yields have also remained elevated.
Crude oil prices added another layer of concern. Brent crude briefly moved above $100 a barrel during Thursday’s session, raising concerns over India’s import bill, inflation and corporate margins.
The rupee also weakened, slipping past the ₹96-per-dollar level amid foreign outflows and elevated oil prices. Meanwhile, auto stocks faced additional pressure following weaker domestic sales reported by some major manufacturers.
The combination of foreign selling, higher yields, expensive crude and currency pressure has kept Indian equities volatile, with both benchmark indices facing their fourth consecutive session of decline.
