Sensex Drops 493 Points as Nifty 50 Extends Losing Streak to Six Consecutive Sessions

The Quick Take

• Sensex fell 493 points (0.63%) to 77,235 on Tuesday, its 6th consecutive session of losses
• Nifty 50 declined 133 points (0.55%) to 24,154.90, extending a multi-session losing streak
• The sustained decline puts pressure on domestic institutional investors to rebalance defensively
• Global headwinds including rising US Treasury yields and tech sector sell-off are weighing on India

India's benchmark equity indices posted a sixth consecutive session of losses on Tuesday, 18 August 2026, with the Sensex dropping 493 points or 0.63% to close at 77,235.46 and the Nifty 50 shedding 133 points or 0.55% to settle at 24,154.90. The sustained six-session losing streak represents one of the more extended periods of consecutive weakness for Indian equities in 2026, signalling that the confluence of global headwinds — including surging US Treasury yields, a global semiconductor sell-off, and elevated oil prices — is beginning to outweigh India's positive domestic macro narrative.

Six consecutive sessions of losses put Nifty 50 at a level that tests support zones that domestic technical analysts and institutional investors have identified as critical. Sustained weakness at these levels can trigger stop-loss selling from derivatives positions, amplifying daily declines through mechanical selling. Historically, multi-session losing streaks in Indian indices are eventually interrupted by buying from domestic mutual funds and pension funds on dips — but the key question for this streak is whether foreign portfolio investors (FPIs) are net sellers, which would overcome the domestic institutional buying capacity. FPI flows into Indian equities have been sensitive to US dollar strength and US yield movements.

The forward signal to watch is the next FPI net flow data from NSE/BSE for the week — sustained net foreign selling would lengthen the losing streak and push Nifty toward stronger technical support levels. Earnings season data for Q1 FY27 also continues to filter through, with company-specific results capable of providing relief rallies in specific sectors. The macro variable is the Fed's July meeting minutes — a hawkish reading would strengthen the USD and increase FPI redemption pressure on Indian equities, while a dovish or neutral outcome could provide relief and trigger a technical recovery bounce.

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