The Nifty 50 faces its longest losing streak since 2020, with technology and auto sectors hardest hit, as global inflation and geopolitical tensions dampen investor sentiment.
Dalal Street’s six-week slide has left a sharp divide across the Nifty 50, with a broad sell-off wiping billions of rupees from investors’ holdings even as a few shares managed to swim against the tide. Over the period from August 10 to September 18, the benchmark index fell about 5%, its longest run of weekly losses since 2020, as crude oil stayed elevated and worries mounted over inflation, interest rates and bond yields.
Market strategists say the pressure is unlikely to ease quickly. G Chokkalingam, founder of Equinomics Research, told Business Standard that unless tensions in West Asia subside and oil prices turn lower, the current mix of cost pressures and tighter financial conditions is likely to keep Indian equities under strain. He also pointed to weak monsoon rainfall as an added concern, warning that softer rural demand could weigh on sentiment just as the primary market remains active.
The damage has been concentrated in several large names, particularly in technology and automobiles. Data from ACE Equity show Tata Consultancy Services was the worst performer among the Nifty 50 during the stretch, falling 14% and eroding about ₹1.25 trillion of investor wealth. Infosys and Wipro also declined sharply, while Shriram Finance, Asian Paints, Jio Financial and Nestle India were among the other notable losers. The weakness in IT stocks has been linked to concern that higher US rates could crimp technology spending by corporate clients.
Yet the broader picture was not entirely negative. Six Nifty companies gained ground and together added roughly ₹72,764 crore in market value, led by Adani Ports, which accounted for more than 40% of those gains. The stock rose 7%, helped by a bullish note from Jefferies, which said the company’s balance sheet remains strong and could turn net cash by fiscal 2031. Kotak Mahindra Bank, Eternal, HDFC Life, Axis Bank and Dr Reddy’s Laboratories also advanced. Still, with the Nifty struggling below key levels and global headwinds persisting, analysts say the market may remain selective and volatile in the near term.
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