The Nifty has fallen for eight straight weeks, its longest weekly losing streak since 2001, wiping out over Rs 26 lakh crore of BSE market value. Here is what is driving the fall.

Foreign selling is the biggest force. FIIs sold Rs 34,970 crore in the latest week and Rs 44,010 crore in September alone, their 15th straight month as net sellers. High US bond yields and a strong dollar are pulling money out of emerging markets.

The weak rupee adds pressure. The currency slipped past 96 to the dollar, eroding dollar returns for foreign investors even when stocks hold flat. Costly crude above $100 a barrel is widening the trade deficit.

Domestic investors are buying the dip: DIIs put in Rs 33,460 crore last week and Rs 76,030 crore in September. And the economy is still growing at 7.8 per cent. Markets recover when foreign flows stabilise or global yields cool.