The Sensex and Nifty have fallen for eight straight weeks, wiping out more than Rs 26 lakh crore in market capitalisation. While elevated oil prices have pressured equities, soaring bond yields, foreign outflows, a stronger dollar and tighter liquidity are adding to the selling pressure and weighing on investor sentiment.
Gold prices fell 0.6% to $4,154.78 an ounce, heading for a second weekly decline as a stronger US dollar and elevated Treasury yields pressured bullion. Traders await US jobs data for Fed-rate clues. With MCX closed for Gandhi Jayanti, international markets, Middle East tensions and weekend developments could drive Monday’s domestic opening.
Nifty valuations have reset sharply from 2024 levels and are now near post-Covid lows, says Alchemy Capital’s Alok Agarwal. He sees the next phase of market growth broadening beyond large caps. Mid- and small-caps, AI infrastructure, healthcare, manufacturing and select defence companies offer opportunities, while global yields and FPI flows remain key.
The yield on the 10-year Treasury note has surged past its 2007 high, now sitting at 5.34%. At the same time, 30-year US bonds have hit a 24-year peak this week. The rise in global sovereign debt is primarily driven by escalating oil prices amid the ongoing Middle Eastern conflict. Investors are now bracing for potentially further interest rate hikes from central banks.
Indian equity markets faced significant pressure as US bond yields surged, leading to a record selloff. The Sensex and Nifty experienced prolonged declines, surpassing previous downturns witnessed during the Covid pandemic. Foreign investors continued to withdraw their investments amidst rising crude oil prices, negatively impacting the rupee's value. Analysts suggest selective stock opportunities may arise despite challenging macroeconomic conditions.
Sri Lotus Developers & Realty has seen a remarkable 29% increase in shares, significantly outpacing the wider market. This boost is attributed to the anticipation surrounding their luxury initiatives and redevelopment projects, which promise robust pre-sales and profit margins. With 22 projects planned, the anticipated gross development value ranges from ₹17,500 to ₹18,000 crore. Furthermore, collections have surged year-over-year, suggesting a bright growth trajectory for the current fiscal year.
In an unprecedented turn of events, foreign portfolio investors have divested a staggering amount exceeding ₹3 lakh crore from Indian equities within the initial nine months of 2026. This marks a record outflow, largely driven by rising US bond yields and ongoing geopolitical conflicts, which diminish India's appeal for international investors.
Vishakha Renewables, a company founded by Gautam Adani that specializes in solar components, has submitted its Draft Red Herring Prospectus. The firm aims to secure ₹1,250 crore through an initial public offering, designated for debt repayment and other corporate needs. A portion, ₹900 crore, will specifically address current borrowings. The IPO also includes an offer-for-sale of 1.81 crore shares, with proceeds benefiting the selling shareholders.
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