The NIFTY50 index closed 0.88% or 198.50 points lower at 22,421.95 after Thursday’s trading session, down from 22,620.45 points at the previous equity market close. The BSE SENSEX ended 0.79% or 570.59 points lower at 71,909.70, compared to 72,480.29 points at the prior close. Investors remained cautious amid massive foreign institutional investor (FII) outflows, multi‑decade high US Treasury yields and a rebound in crude oil prices. The market closed for a holiday on Friday, October 2, with trading resuming on Monday, October 5.

Foreign institutional investors sold capital market assets worth ₹9,484.22 crore in a single day on Thursday, while domestic investors added support. In the last four trading sessions, investors’ wealth was wiped out by approximately ₹17.81 lakh crore, reflecting a consistent decline in the stock market. The NIFTY50’s top weekly laggards included Bajaj Auto at -10.4%, Max Healthcare at -10%, Apollo Hospitals at -8.5%, ONGC at -7% and Titan Co. at -6.6%. Conversely, the top gainers were Kotak Mahindra Bank at 3.3%, Axis Bank at 2.6%, Infosys at 2%, HDFC Life Insurance at 1.4% and InterGlobe Aviation at 0.8%.

The week’s market dynamics were driven by US Treasury yields reaching an over two‑decade high of 5.344%, prompting a shift toward safe‑haven assets. The US dollar hit a 16‑month high, further dampening sentiment in emerging markets as expectations of a Fed rate hike grew. Foreign portfolio investors sold ₹58,443 crore of capital market assets in September 2026, underscoring sustained outflows amid elevated risk sentiment. Oil prices rebounded, with Brent crude trading around $102 per barrel, fueled by supply disruption fears following President Donald Trump’s peace deal rejection.

Sectoral performance reflected the broader sell‑off, with Nifty Auto down 5%, Capital Markets down 4.8%, Metal down 4.5%, FMCG down 4.3% and Cement down 4.3%. The only major index to gain was Nifty IT, up 0.3%, buoyed by momentum ahead of Accenture’s earnings and better‑than‑expected US PCE inflation data. In the midcap space, the Nifty Midcap 100 index fell 3.7%, with top losers PB Fintech at -18.8%, Patanjali Foods at -12.3%, Swiggy at -11%, Fortis Healthcare at -10.5% and LIC Housing Finance at -9.8%.

Small‑cap stocks also suffered, with the Nifty Smallcap 100 index down 3.2%. Leading losers included IFCI at -13.4%, Ola Electric at -12.8%, Gujarat Mineral Development Corp. at -10.1%, Garden Reach Shipbuilders at -9.9% and Physicswallah at -9.4%. Top gainers were Cupid at 17.3%, Sterlite Technologies at 16%, HFCL at 13.1%, MTAR Technologies at 10.6% and TD Power Systems at 6.8%. The market’s volatility index, Nifty India VIX, rose 13.9% due to selling pressure and subdued sentiment.

Investors continued to monitor potential peace‑deal updates between the United States and Iran, as geopolitical tensions kept energy prices volatile. Domestic factors such as worse‑than‑expected September 2026 sales data and semi‑annual index rebalancing added to market chatter. Despite these headwinds, the market remained open for regular trading on Monday, October 5, with expectations that the indices would resume their downward trend unless new catalysts emerged.