Indian stocks extend record losing streak to eight weeks on $3.7bn outflow

On October 1, 2026 Indian benchmark indices extended their losing run to an eighth consecutive week, the longest such stretch in 25 years, as global risk aversion and relentless foreign selling weighed on prices. Overseas investors sold more than 360 billion rupees (about $3.7 billion) of Indian shares in September, piling pressure on the rupee which weakened past 96 per U.S. dollar, a fresh low. Analysts cited expensive valuations, slowing corporate earnings growth, high U.S. Treasury yields and the strong dollar as reasons global funds have rotated out of India toward cheaper Asian markets like South Korea and Taiwan that are benefiting more directly from the AI chip boom. Policy makers in New Delhi are expected to respond with measures to support capital flows, while the Reserve Bank of India has been intervening to slow the rupee's slide and protect imported-inflation-sensitive sectors such as energy and electronics.