Why the stock market fell for 8th straight week, its longest losing streak in 25 years

The equity benchmark indices extended their losing streak on Thursday, with the Nifty falling 199 points to 22,422 and the Sensex declining 571 points to 71,910. The Nifty Bank slipped 182 points to 54,451, while the Nifty Midcap index fell 600 points to 58,732.

The market declined in all four trading sessions this week, with the Nifty falling over 3% for its worst weekly performance in six months. The benchmark also marked its eighth consecutive weekly decline, its longest losing streak in 25 years.

Barring information technology (IT), all sectoral indices ended the week lower, with healthcare and auto among the biggest losers. The BSE-listed companies' combined market capitalisation fell by nearly ₹20 lakh crore during the week.

Here are the key factors that shaped the market today:

1. Auto stocks slide despite mixed monthly sales

Auto stocks remained under pressure despite mixed monthly sales numbers, with the Nifty Auto index falling more than 3% for the week.

Bajaj Auto plunged 8% on Thursday, marking its biggest single-day fall in two years after its monthly sales numbers came in below expectations.

Maruti Suzuki also fell 5% despite reporting largely in-line monthly sales numbers. Auto financiers Shriram Finance and Cholamandalam Investment and Finance Company declined as much as 4%.

Bajaj Auto, Apollo Hospitals, Titan Company, Grasim Industries, Eternal and Max Healthcare were among the biggest Nifty losers for the week.

2. PB Fintech falls for sixth straight session

PB Fintech continued its decline, falling for the sixth consecutive trading session following the Insurance Regulatory and Development Authority of India's (IRDAI) consultation paper. The stock slipped below its IPO price during the week.

Among other midcap stocks, Uno Minda, Swiggy, Kalyan Jewellers, UPL and Piramal Pharma were among the biggest losers, while Mphasis, Coforge, Nuvama Wealth Management, CG Power and Industrial Solutions, Havells India, Hitachi Energy India and Cummins India were among the top gainers.

Market breadth remained weak at the close, with the advance-decline ratio at 1:3.

3. IT stocks provide some support

IT stocks were the only major sectoral pocket to end the week in positive territory. The Nifty IT index gained more than 2% during the week, providing some support to the broader market.

4. Nifty Bank relatively resilient

Banking stocks outperformed the broader market on Thursday, with the Nifty Bank falling 182 points to 54,451.

HDFC Bank provided support to the banking index even as the broader financial sector remained under pressure. The Nifty Bank ended the week around 2% lower.

5. Rupee slips below 96 per dollar

The rupee returned above the 96-per-dollar mark on Thursday, falling 48 paise against the US dollar. This was its biggest single-day decline in two months.

Read more: Stock Market Crash: Five major reasons behind the ₹20 lakh crore wipe out this week