Bleak Winter Ahead For Indian Markets After Record Nifty Correction
· Business · Economic Times
Indian equities entered October following one of the sharpest monthly sell-offs in recent years, with the Nifty falling nearly 6% in September to log its eighth consecutive weekly decline. Foreign institutional investors drove the pressure by exiting two months of buying and selling heavily, pushing total outflows for 2026 past Rs 2.5 lakh crore according to NSDL data. The broader global economic backdrop compounded domestic vulnerabilities, driven by US Treasury yields climbing above 5%, a firm dollar, elevated crude oil prices, and rupee weakness. Higher US yields reduced the relative appeal of emerging-market equities, while higher crude oil prices raised import bill and inflation risks for India. Analysts project October could trade in two speeds, supported by festival demand and government spending, though foreign capital may not return immediately.
Why it matters
Retail investors, domestic funds, and market participants face continued volatility as foreign capital outflows and global macroeconomic pressures weigh on Indian equities.
Read the original report — Economic Times
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