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Markets fall for 4th consecutive day amid significant foreign fund outflows
Oct-01-2026

Indian equity benchmarks ended lower for the fourth straight day on Thursday as relentless foreign fund outflows, high bond yields and a fresh spike in crude oil prices weighed on investor sentiment. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 10,148.41 crore on Wednesday, according to exchange data.

The Sensex fell around 0.80%, while the Nifty was down about 0.90% amid broad-based selling in heavyweight stocks. Auto stocks remained the biggest drag, as September sales numbers from several automakers fell short of expectations, dragging the Nifty Auto index down more than 3%. Markets sentiment further weighed down as rupee weakened to a two-month low against the dollar. 

Some of the important factors in trade:

India records 13% rainfall deficit during monsoon season: The India Meteorological Department (IMD) has said India received 87.4 per cent of its long-period average (LPA) rainfall during the southwest monsoon season from June to September, recording a rainfall deficit of about 13 per cent between June 1 and September 30.

Govt’s gross GST collections rise around 15% to Rs 2,03,521 crore in September: The government data has showed that gross goods and services tax (GST) collections rose 14.75% to Rs 2,03,521 crore in September 2026 as compared to Rs 1,77,365 crore in September 2025 aided by domestic consumption and strong growth in revenues from imports. 

India’s manufacturing PMI rebounds to 55.1 in September: India’s manufacturing sector gained strong momentum in the month of September, with faster increases in new orders and output supporting job creation and inventory accumulation. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) jumped from 52.8 in August to 55.1 in September. 

Crisil lifts India’s FY27 GDP growth forecast to 7%: Citing expectations of strong growth in the April-September period, domestic rating agency Crisil has raised its FY27 GDP growth estimate for India to 7 per cent from its earlier projection of 6.6 per cent.

Global front: European markets were trading lower as higher oil prices triggered inflation concerns and raised the prospects of monetary tightening by several central banks. Asian markets settled mixed on Thursday as markets assessed the inflationary situation, the Middle East crisis, the outlook for the technology sector and the movements in bond yields. 

Finally, the BSE Sensex fell 570.59 points or 0.79% to 71,909.70 and the CNX Nifty was down by 198.50 points or 0.88% to 22,421.95. 

The BSE Sensex touched high and low of 72,572.90 and 71,292.88, respectively. There were 6 stocks advancing against 24 stocks declining on the index.

The top gaining sectoral indices on the BSE were IT up by 1.80%, TECK up by 1.06% and Telecom up by 0.52%, while Auto down by 3.09%, Metal down by 2.18%, Consumer Discretionary down by 2.07%, Basic Materials down by 1.90% and Utilities down by 1.71% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.80%, HDFC Bank up by 1.52%, HCL Technologies up by 1.39%, TCS up by 1.38% and Tech Mahindra up by 0.34%. On the flip side, Maruti Suzuki India down by 5.01%, Tata Steel down by 3.33%, ITC down by 3.00%, Mahindra & Mahindra down by 2.99% and Adani Ports &SEZ down by 2.53% were the top losers.

Meanwhile, India’s manufacturing sector gained strong momentum in the month of September, with faster increases in new orders and output supporting job creation and inventory accumulation. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) jumped from 52.8 in August to 55.1 in September. 

The survey report stated that new export orders expanded at a quicker pace, amid greater demand from clients in Brazil, Europe, the UAE and the US. Jobs growth resumed in September, with the pace of expansion in employment remaining solid and the most pronounced since May, following a blip in the previous month.

Purchase stocks expanded further at the end of the second fiscal quarter, with the pace of accumulation accelerating to a seven-month high and staying well above the long-run average. Supporting the latest increase in pre-production inventories was another improvement in vendor performance. Average lead times on inputs shortened only slightly, however, and to the least extent in three months.

On the price front, there were quicker increases in both input costs and selling prices, but rates of inflation remained mild by historical standards. Further, Indian manufacturers upgraded their output forecasts in September, with the overall level of positive sentiment rising to a four-month high. Optimism was underpinned by new enquiries in the pipeline and expectations that demand conditions will remain favourable.

CNX Nifty touched high and low of 22,610.60 and 22,217.30, respectively. There were 13 stocks advancing against 37 stocks declining on the index.  

The top gainers on Nifty were Infosys up by 4.11%, HDFC Life Insurance up by 2.49%, HDFC Bank up by 1.76%, SBI Life Insurance up by 1.49% and Max Healthcare up by 1.20%. On the flip side, Bajaj Auto down by 7.62%, Maruti Suzuki India down by 4.86%, Shriram Finance down by 3.84%, Tata Steel down by 3.42% and Adani Ports &SEZ down by 3.36% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 118.07 points or 1.11% to 10,487.93, France’s CAC fell 60.21 points or 0.76% to 7,904.30 and Germany’s DAX lost 24.89 points or 0.1% to 25,174.30. 

Asian markets settled mixed on Thursday, tracking the mixed cues from Wall Street overnight. South Korean market rose, led by gains in chipmakers after the country’s monthly exports topped $120.9 billion in September, an 83.5% year-on-year growth, driven by unprecedented AI-fuelled semiconductor demand. However, investors remained cautious due to elevated oil prices and rising US bond yields, driven by persistent concerns over interest rate hikes. Meanwhile, markets in China and Hong Kong remained closed on account of National Day holiday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

--

--

--

Hang Seng

--

--

--

Jakarta Composite

6,009.50

-61.64

-1.03

KLSE Composite

1,630.36

-20.81

-1.26

Nikkei 225

68,956.72

2,203.00

3.30

Straits Times

5,667.67

-8.21

-0.14

KOSPI Composite

6,971.35

133.31

1.95

Taiwan Weighted

48,353.49

413.36

0.86
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