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Market Falls for 8th Consecutive Week, First Time in 25 Years: Reasons for Collapse and Future.
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News18•01-10-2026, 15:47
Market Falls for 8th Consecutive Week, First Time in 25 Years: Reasons for Collapse and Future.
- •For the first time in 25 years, the market has fallen for 8 consecutive weeks, with September being the worst for Nifty in 25 years.
- •This week, investors' wealth of approximately 20 lakh crore rupees was wiped out, and 12 major Nifty shares hit 52-week lows.
- •Crude oil prices are soaring, with Brent crude reaching $100 per barrel, raising fears of further inflation.
- •Money is being withdrawn from bond markets worldwide, with US 10-year bond interest rates at a 20-year high.
- •Foreign investors are rapidly withdrawing money from the Indian market, selling shares worth 2.50 lakh crore rupees in 2026 so far.
- •The Indian Rupee is continuously weakening against the US Dollar, depreciating by 7% this year and 1% in September alone.
- •Companies have raised 1.13 lakh crore rupees through IPOs this year, alongside a 1 lakh crore rupee block deal among large investors.
- •Fear of expensive loans is impacting the market, with the US Fed and RBI expected to increase interest rates.
- •Experts suggest that if the Fed raises interest rates, foreign investors will withdraw money, negatively affecting the stock market.
- •Investors are concerned due to the possibility of drought in many parts of the country, impacting sectors like auto sales.
Key Questions Answered
The market collapse is driven by soaring crude oil prices reaching $100 per barrel, rising global bond yields, aggressive selling by foreign investors who withdrew 2.50 lakh crore rupees in 2026, a weakening Indian Rupee, and concerns over potential droughts and impending interest rate hikes.
A massive tsunami in the market wiped out about 20 lakh crore rupees of investors' wealth, pushing 12 major Nifty company shares down to their lowest levels in a year.
Soaring Brent crude prices have raised widespread fears of inflation. Additionally, expectations that the US Federal Reserve and the Reserve Bank of India (RBI) may raise interest rates could further increase loan EMIs for the common public.
