Indian indexes close special session in the red for the first time since 2017

what happened

Indian equities began the new Samvat 2083 on a weak note. The Sensex closed the special Muhurat session held on Diwali 28.62 points lower at 80,999.40, while the Nifty 50 lost 6.65 points to settle at 25,023.70. It was the first Muhurat session to end in negative territory since 2017, ending an eight-year run of gains.

Broader markets did better. The Nifty Midcap index rose 0.13% and the Nifty Smallcap index gained 1%. According to Reasons, Middle East tensions, including friction between the US and Iran and security concerns around the Strait of Hormuz, weighed on global markets through 2026 and pushed Brent crude above $100 a barrel.

why it matters

Reasons reports that foreign institutional investors sold roughly $42-45 billion of Indian equities in 2026, the sixth straight year of net outflows. The rupee hit a record low of 97.12 per dollar in May, and the 10-year US Treasury yield reached 5.30% in October. That mix makes dollar assets and US government bonds more attractive than emerging-market stocks, which keeps pressure on Indian indexes.

market impact

Indian stocks: foreign outflows and a weaker rupee press on the market

tags

instruments