Business · India Bureau
Nifty extends losing streak to longest since 2020 pandemic crash
India's benchmark equity index logged its worst weekly performance since the Covid-19 market selloff, pressured by plunging crude oil prices and rising bond yields. Insurance and fintech stocks bore the brunt of the downturn.
LSN India ·
The Nifty 50 extended its losing streak this week, marking its longest consecutive weekly decline since the coronavirus-induced market crash of 2020, as multiple headwinds converged to dampen investor sentiment across Indian equities.
Brent crude prices tumbled 11% during the week, sapping energy stocks and raising concerns about imported inflation pressures on the Indian economy. Simultaneously, yields on India's 10-year government securities hardened, reflecting broader capital market dynamics that typically weigh on valuation-sensitive sectors including financials and insurance.
Insurance stocks bore significant pressure amid the market correction, with sector-wide selling accelerating concerns about profitability and returns. The weakness extended to fintech players, with PB Fintech plummeting 33% on mounting worries about regulatory reforms from the Insurance Regulatory and Development Authority (IRDAI).
Analysts attributed the broad-based weakness to a combination of global commodity headwinds and domestic monetary tightening signals, which have prompted fund managers to reassess equity positioning ahead of key policy announcements and quarterly results. The market's weakness also reflects growing caution about economic growth trajectories amid persistent inflationary pressures.