Indian stocks sink to 8-week losing streak as $250 billion erased

Indian equities are in a deepening selloff, with the NSE Nifty 50 Index falling for seven consecutive weeks and erasing nearly $250 billion in market value. The index broke below its 200-day moving average on a weekly basis for the first time since March 2020. The decline is driven by multiple pressures, including rising global bond yields, higher oil prices, and a weakening rupee, which have prompted foreign investors to withdraw close to $26 billion from Indian stocks this year. The lack of significant artificial intelligence plays has also reduced the market's appeal among global money managers. The Nifty is down 2.3% this week and on track for an eighth straight weekly decline, its longest losing streak since the dot-com bubble era. The selloff persists despite stocks trading at their cheapest relative to earnings estimates since 2020, a sharp reversal from recent years when India was a favored emerging-market trade.