Stock Market Crash, Rs 18.37 Lakh Cr Wiped in 7 Weeks; Sensex, Nifty Eyes Longest Losing Streak Since Covid?

Sensex and Nifty started the week on an extremely bearish note, tumbling 1,064 points and 333 points, respectively, on Monday. If the selloff continues in the coming days, both benchmarks will mark their 8th consecutive weekly decline—their longest losing streak since the Covid-led correction in 2020. Over the past seven weeks, both indices have fallen nearly 6%, wiping out almost Rs 18.50 lakh crore of investor wealth.

Sensex Below 73,000, Nifty Under 23,000

On Monday, Sensex touched an intraday low of 72,832.08, crashing by 1,064 points or 1.44% from its previous close. At present, Sensex traded at around 72,925. All 30-scrip on Sensex are in deep red with Adani Ports, L&T, Bharat Electronics, HDFC Bank, SBI, Hindustan Unilever, ICICI Bank, Eternal, M&M, Reliance Industries, and Bajaj Finance taking the worst beating as they fell 1.5% to 2.5%.

Nifty also faced Black Monday. The 50-scrip benchmark nosedived by 333 points or 1.44% to hit 22,807.55 intraday low from the previous close. It currently struggles to hold 22,840 mark. All indices are under pressure.

Bank Nifty dropped 2%, Nifty Financial Services slipped 1.5%. Nifty Midcap and Smallcap indices fell by 1% to 1.5%. Among the sectoral indices, metals, PSU banks, private banks, chemicals, auto, financials, realty, and oil & gas stocks are top losers.

However, India's volatility index skyrocketed by 13-14%.

Explaining the reason behind the decline, Sachin Gupta, VP - Research, Choice Broking said, Indian equity markets came under renewed selling pressure on Monday, September 28, 2026, with the Sensex breaking below the key 73,300 support level and the Nifty slipping below the crucial 23,000 mark. The breakdown of these technical levels has further weakened investor sentiment and increased selling pressure."

Up to Rs 6.09 lakh crore has been erased in a single day due to the selloffs. But the market has been losing a lot of ground for a long time. To be precise, Sensex and Nifty are in a seven-week-long losing spree. If the trend continues, it might just touch 8th weekly decline, the longest ever in the Indian market's history.

Investors' Wealth Erosion

September 21-25: BSE-listed companies erased up to Rs 30,848 crore in market value.

September 15-18: Although the market cap of BSE-listed companies gained Rs 7,40,842.67 crore from September 15 to 18, up to Rs 1,77,009.15 crore of wealth was eroded compared with the previous week's close.

September 7-11: During the five-day trading week, more than Rs 5 lakh crore of wealth was wiped out. From the September 8 market-cap level, the market value of BSE-listed companies plunged by nearly Rs 6.70 lakh crore, making it the worst weekly performance during the seven-week decline.

August 31-September 4: Up to Rs 197,608 crore of wealth was wiped out during the week. Compared with the August 28 close, however, the erosion stood at Rs 456,655 crore, making it the second-worst weekly decline.

August 24-28: The market cap of BSE-listed companies rose by Rs 85,866.91 crore.

August 17-21: The market cap fell by Rs 70,872.51 crore.

August 10-14: This was the third-worst weekly performance, with the market cap of BSE-listed companies dropping by Rs 2,00,933.19 crore.

The market valuation of BSE-listed companies stood at over Rs 494.17 lakh crore on August 10, which is the highest level since the start of August to date. From this level, the valuation has nosedived by over Rs 18.37 lakh crore. As of September 28, the market cap stood at around Rs 475.80 lakh crore.

Sensex, Nifty Weekly Declines

"Indian equity markets closed lower last week for the 7th consecutive week," said analysts at SBI Securities in their weekly note. Sensex and Nifty fell 0.9% and 0.5%, respectively, marking their seventh straight weekly decline, on par with the Covid-led correction. Elevated crude oil prices, rising Treasury yields, Middle East tensions, monetary policy tightening and relentless FII selling have weighed on sentiment.

The last time Sensex and Nifty fell for seven straight weeks was during the first stage of the coronavirus pandemic, when both indices declined from late February to early April 2020.

Interestingly, the latest seven-week losing streak comes after another prolonged selloff earlier in 2026. Following the start of the US-Israel-Iran conflict, which led to the Strait of Hormuz blockade and a global energy crisis, Sensex and Nifty recorded a six-week losing streak from late February to early April.

Nifty Below 23,000: What's Next?

The West Asia situation remains challenging, with repeated attacks on ships in the Persian Gulf keeping crude oil prices elevated. Brent crude remains above $100 a barrel after briefly nearing $110 earlier this month. Higher oil prices add to inflationary pressures, weighing on markets.

Global bond yields have also risen sharply. The 10-year US Treasury yield has crossed 5%, hitting a 19-year high of 5.22%, while the 30-year yield touched a 30-year high. Yields have also climbed across European and Asian markets, adding to concerns around inflation, fiscal deficits and monetary tightening. In India, the 10-year yield rose to 7.10%.

"Surging yields and higher inflation have also sharply increased the probability of another rate hike from the US Fed in its next policy meeting in October itself, which also led to weakness in the US equity markets this week, especially in the economy-facing Dow Jones and Russell 2000 indices. Global monetary tightening is also likely to lead to the RBI raising interest rates," the SBI Securities note said.

The RBI is also likely intervening in the currency market, using robust forex reserves built through the FCNR (B) scheme while absorbing excess liquidity from the banking system. Meanwhile, the monsoon is nearing its end.

For the September 28-October 2 trading week, SBI Securities expects markets to track September auto sales, GST collections and 2QFY27 business updates from the BFSI, Realty, Metals, FMCG and discretionary consumption sectors. US September non-farm payrolls and PCE inflation data will also be closely watched amid the rising-yield environment.

With Nifty already below the 23,000 mark, SBI Securities sees the next level at 22,600.

Cooling Crude, Treasury Yields Key for Markets?

Two contrasting trends are playing out: the economy remains resilient while markets continue to weaken.

"The economy is resilient and corporate earnings are improving, but the market is steadily going down. This is a case of external headwinds overpowering domestic tailwinds. Brent crude at $106 and the US 10-year yield at 5.2% are strong headwinds that are weighing on markets. FPIs, after turning buyers in July and August have again turned sellers in September. This scenario will keep the market under pressure in the near-term," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Vijayakumar also pointed to a divergence in the broader market. While FPIs are selling large-caps, they continue to buy mid- and small-caps despite elevated valuations. The broader market continues to show momentum, which he sees as a short-term phase.

He said the valuation gap between large-caps and mid- and small-caps is unlikely to last. A reversion to the mean is likely only when crude oil prices and US bond yields cool.

Year-to-date, Sensex has crashed 12,287.44 points or 14.42%, while Nifty 50 has nosedived by 3,318.60 points or 12.69% as of now.

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