The Nifty 50 has fallen for eight weeks in a row, its longest losing streak in about two decades. If you started a monthly SIP in the last few years, your app is probably showing red. Here is the plain version: why the market is falling, what experts are saying, and what a young investor can sensibly think about before pressing "pause SIP".
What is happening in the market?
- A long slide. The Nifty 50 is about 15% below its September 2024 peak of 26,277 (Business Today). On Monday, October 5, it closed at 22,555.75 and the Sensex at 72,382.47, after four straight falling sessions (The Economic Times).
- Foreign investors are selling. They have pulled out about Rs 4 lakh crore this year, mostly from large companies (Business Today).
- Outside pressure. US bond yields are high, oil is around $101-102 a barrel, and the rupee is down 6.6% this year (Business Today, The Economic Times).
- The economy is not falling. Business Today notes India's economy is growing at 7.8%. The market and the economy are not the same thing.
- A key date. The RBI announces its rate decision on Wednesday, October 7. Analysts expect a rate hike (The Economic Times). Markets can swing around such events.
Why prices fell, in simple words
Think of share prices as what buyers are willing to pay today. When foreigners sell in big amounts and interest rates rise, buyers get cautious and prices drop. Business Today says the Nifty now trades at about 17 to 18 times its expected yearly earnings, down from 23 to 24 times in 2024. In simple terms, shares are cheaper relative to what companies earn than they were two years ago. Cheaper does not mean they cannot fall further.
What experts are saying
Dinshaw Irani of Helios Capital told Business Today he believes "we are somewhere in the endgame here" and that it is time to start averaging, meaning investing in parts as prices fall. Ashish Chaturmota of JM Financial says large companies were overvalued and got sold, while many small and mid-sized companies have shown stronger earnings growth. Business Today also notes that the risk of further falls is real. These are views from fund managers, not guarantees, and some of them manage money in the funds they talk about.
What a SIP does when markets fall
A SIP buys a fixed rupee amount every month. When prices are low, the same money buys more units. Here is an illustrative example with made-up numbers, not a forecast. You invest Rs 5,000 a month for three months while a fund's price goes from Rs 100 to Rs 80 and back to Rs 100:
- Month 1: 50 units at Rs 100
- Month 2: 62.5 units at Rs 80
- Month 3: 50 units at Rs 100
You hold 162.5 units for Rs 15,000, an average cost of about Rs 92. Someone who invested the whole Rs 15,000 in month 1 would have 150 units. The dip helped the SIP investor. This works only if the price eventually recovers, which is not certain, and only if you keep investing through the dip. Business Today also points out that many SIP investors have seen weak returns for two years, so patience is being tested.
5 things to think about before you stop your SIP
- Time horizon. Money you need within one to three years should not sit in equity funds. Money for goals five to ten years away has more time to recover.
- Emergency fund first. Keep several months of expenses in a safe place so you never have to sell investments in a bad month.
- Do not borrow to invest. A falling market with a loan to repay is where young investors get hurt.
- Do not try to time the bottom. Nobody knows it in advance. Experts quoted above are giving opinions, not dates.
- Know your mix. The experts in the article suggest a mix of funds with some gold and bonds. Check that your savings are not all in one place.
Sources
- Business Today, BT Big Story: Markets in the red, here's what experts advise investors to do (October 6, 2026)
- The Economic Times, Indices snap four-day losing streak as oil prices ease, positive global cues (October 5, 2026)
Disclaimer: This post is for education only and is not investment advice. Mutual fund and share investments are subject to market risk. The SIP example uses made-up numbers. Talk to a SEBI-registered adviser about your own situation.
