New Delhi, Sept. 29 -- Indian equities are breaking through a series of long-held technical support levels as a selloff gathers pace in a market once considered an emerging-market darling.

The benchmark NSE Nifty 50 Index has fallen for seven straight weeks, wiping out nearly $250 billion in market cap, and broken through its 200-day moving average on a weekly basis for the first time in six years. The rout has been driven by a convergence of pressures rather than a single trigger.

India's reliance on oil imports means rising prices threaten to fan inflation and cloud its growth outlook. A relentless rally in global bond yields is making local shares less attractive, prompting foreign investors to pull out even more money. The lack of m...