Nifty 50 hits record losing streak, longest since 1996 inception

Between December 28, 1995, and January 10, 1996, the Nifty had previously declined by about 6 per cent over 10 straight sessions of losses

The benchmark Nifty 50 index concluded its 10th consecutive day of losses on Tuesday, closing at 22,080, its lowest level since June 4, 2024. This represents a 16 per cent plunge from its peak on September 26. The 10 consecutive sessions of losses mark the longest losing streak in the Nifty's history since its inception on April 22, 1996, with a base date and value of November 3, 1995 and 1,000, respectively.

 

Between December 28, 1995 and January 10, 1996, the Nifty had declined by about 6 per cent over 10 straight sessions of losses. During the most recent 10 sessions, the Nifty has fallen 3.83 per cent, or 879 points.

 

Interestingly, in the last 19 trading sessions starting from February 5, the Nifty has gained only once — just 30 points, or 0.13 per cent, on February 17. Meanwhile, the Sensex has managed to eke out gains on three occasions during these last 19 sessions. The 30-share index last closed at 72,990, down 96 points, or 0.13 per cent. The Sensex is down nearly 13,000 points, or 15 per cent, from its peak. 

 

The broader market indices, including the Nifty Midcap 100, Nifty Smallcap 100, and Nifty Microcap 250, are all in "bear market territory”, having plunged more than 20 per cent each from their respective peaks. Last month, the Nifty logged its fifth straight monthly loss — its longest monthly losing streak since 1996.

 

“This market correction has coincided with a slowdown in earnings growth, concerns over global economic growth due to the tariff war, and foreign outflows," said a note by Motilal Oswal.

 

"The expectations for 2025-26 (FY26) corporate earnings (15 per cent year-on-year growth for the Nifty 50 companies) are still somewhat elevated, in our opinion, given the underlying macro-micro backdrop, and are thus ripe for further downgrades. The recent correction in broader markets factors in some of the potential disappointments in earnings ahead," the note said.

 

The brokerage said the valuations for midcaps and smallcaps are still expensive compared to their historical averages and versus the Nifty 50. The Nifty is currently trading at a 12-month forward P/E (price-to-earnings) of 18.6x, below its long-period average (LPA) of 20.5x.