Nifty logs an eighth straight weekly loss as auto shares, crude and foreign selling weigh

Indian equities extended their losing run to an eighth consecutive week, reported as the longest such streak in 25 years. Market reports linked the pressure to sustained foreign selling, elevated global yields and higher crude prices. The combination added to concern about imported inflation, the rupee and corporate input costs.

Auto shares were a notable drag after September sales disclosures disappointed in parts of the sector. Bajaj Auto reported total sales of 5.38 lakh units, up 5% year-on-year, but below a CNBC-TV18 poll estimate of 5.79 lakh units. Mahindra & Mahindra reported 1.15 lakh vehicles sold, up 15% year-on-year, against the poll’s 1.17 lakh estimate; its tractor sales also fell short of analyst expectations. Maruti Suzuki’s reported sales exceeded the same poll estimate, but its shares still weakened in the broad sell-off.

Hospital stocks also came under pressure after the Supreme Court raised concerns about medicine mark-ups and the requirement that inpatients buy medicines through hospital pharmacies. The court’s comments were not a binding order; analysts said they could put a high-margin revenue stream under scrutiny. IT shares held up better after softer-than-expected US inflation data eased expectations of another near-term Federal Reserve rate increase. The reported weakness in power and infrastructure-related shares came amid broader concern over oil costs and rising yields; available reports did not identify a single company-specific trigger for telecom’s modest decline.

The Reserve Bank of India’s revised export-import rules took effect on October 1. Exporters generally have nine months, rather than the earlier notified 15 months, to realise and repatriate proceeds; the period for specified rupee-invoiced exports was reduced from 18 months to 12 months. The RBI’s change brings foreign-currency earnings back sooner, while leaving exporters less time to collect overseas receivables.

The September manufacturing PMI rose to 55.1 from 52.8 in August, its strongest reading in seven months, according to the HSBC survey compiled by S&P Global. The result was below the preliminary estimate of 55.7. Separately, official data showed industrial production growth of 8% year-on-year in August, against 7.4% in July. September GST collections increased 14.7% year-on-year to Rs 2.04 lakh crore, with domestic collections up 10.1% and import collections up 25.9%.

The Finance Ministry’s September review estimated second-quarter FY27 growth at 7.3%; this was a nowcast, not a reported GDP outcome. It contrasted with the RBI’s 6.4% forecast cited in the report. The ministry also kept small-savings rates unchanged for the October-December quarter. September CPI was not released during the week; the government’s calendar scheduled it for October 12.

Foreign investors sold Indian equities in each of the four trading sessions, with provisional exchange data showing cumulative net selling of about Rs 34,965 crore. Domestic institutions bought about Rs 33,455 crore over the same period, providing a substantial counterweight but not preventing the market’s weekly decline.

Global trading was mixed. Asian equities were uneven, with technology shares supported by chip-sector news, while Wall Street had a broadly weaker session and the Nasdaq outperformed on technology strength. Market reports linked the pressure on emerging-market assets to elevated US Treasury yields and a firmer dollar. Participants also pointed to uncertainty around Middle East supply and stalled US-Iran discussions as support for oil prices; for India, the implication is greater sensitivity to import costs and currency pressure.

The September vehicle data supplied a direct test of demand against expectations. Bajaj Auto’s total sales missed the poll estimate despite year-on-year growth, while M&M’s reported vehicle sales were also below the poll; these comparisons helped explain the pressure on the two stocks. The sector’s weak response was not uniform: Maruti’s sales exceeded the cited poll, but its shares fell with the broader auto group.

Kotak Mahindra Bank said the RBI had approved Anup Kumar Saha as its next managing director and chief executive for a three-year term beginning January 1, 2027. The bank still needs to complete its formal process and seek shareholder approval. NCC disclosed additional September orders worth Rs 500.22 crore, taking the month’s disclosed order total to Rs 1,576.93 crore. Highway Infrastructure also announced a Rs 220.66 crore toll-collection and plaza-operations contract for the Gorakhpur Link Expressway. These were company disclosures; the available reports did not provide market expectations against which to judge the orders.

The RBI’s monetary policy decision is due on October 7, following its October 5-7 meeting. With global yields and oil prices high, the decision and the central bank’s assessment of inflation risks are likely to remain important for domestic bond and currency sentiment. September CPI is scheduled for October 12, so it was not yet available to inform the week’s market action.