Indian equities could stay flat or slip further in October after one of the sharpest monthly sell-offs in recent years, with the Nifty sliding nearly 6 percent in September and logging its eighth straight weekly decline, analysts said on Saturday.
The eight weeks of losses marked the longest losing run of the benchmark index in 25 years, according to the analysis carried by IANS. The 50-scrip Nifty fell in all four trading sessions of the final week and ended 3.1 percent lower at 22,422 on Thursday.
What is weighing on the market
Analysts flagged global factors — higher US yields, a firm dollar, elevated crude prices and a weak rupee — as the biggest headwinds. Foreign institutional investors remained net sellers and offloaded shares worth Rs 34,970 crore in the past week alone, ending a two-month buying streak in September and taking year-to-date outflows beyond Rs 2.5 lakh crore.
US bond yields climbed above 5 percent through September, crude oil stayed elevated amid Middle East supply concerns, and the rupee came under sustained pressure — a combination that has hit emerging-market sentiment broadly.
What could change the picture
Analysts said October could bring some stability, but a clean recovery is unlikely. Festival demand, government spending and the start of the earnings season could support large banks, select manufacturers and domestic consumption-linked stocks, but foreign inflows are expected to remain muted.
Many analysts predicted a recovery by December, with large-cap stocks leading the rebound, urging investors to focus on domestic earnings, sensible valuations and strong balance sheets. Mid and small caps may take longer to deliver profits, they said, with any sustained recovery still depending on oil prices and US yields rather than domestic demand alone.
Sources: The Hawk (IANS): Indian stock markets may remain flat in Oct amid global headwinds — experts
The eight weeks of losses marked the longest losing run of the benchmark index in 25 years, according to the analysis carried by IANS. The 50-scrip Nifty fell in all four trading sessions of the final week and ended 3.1 percent lower at 22,422 on Thursday.
What is weighing on the market
Analysts flagged global factors — higher US yields, a firm dollar, elevated crude prices and a weak rupee — as the biggest headwinds. Foreign institutional investors remained net sellers and offloaded shares worth Rs 34,970 crore in the past week alone, ending a two-month buying streak in September and taking year-to-date outflows beyond Rs 2.5 lakh crore.
US bond yields climbed above 5 percent through September, crude oil stayed elevated amid Middle East supply concerns, and the rupee came under sustained pressure — a combination that has hit emerging-market sentiment broadly.
What could change the picture
Analysts said October could bring some stability, but a clean recovery is unlikely. Festival demand, government spending and the start of the earnings season could support large banks, select manufacturers and domestic consumption-linked stocks, but foreign inflows are expected to remain muted.
Many analysts predicted a recovery by December, with large-cap stocks leading the rebound, urging investors to focus on domestic earnings, sensible valuations and strong balance sheets. Mid and small caps may take longer to deliver profits, they said, with any sustained recovery still depending on oil prices and US yields rather than domestic demand alone.
Sources: The Hawk (IANS): Indian stock markets may remain flat in Oct amid global headwinds — experts
