FX168 Finance News Agency (Europe) News On Thursday (October 31), affected by continuous selling from overseas investors, the india NSE Nifty 50 index fell by 6.2% in October, marking the largest monthly decline since the COVID-19 panic in March 2020, and also the first monthly decline since May for the index.

(Image source: Bloomberg)

Main reasons:

Weak corporate profits: In the case of valuations higher than historical average levels, weak corporate profits have dampened market sentiment.

Continued outflow of foreign capital: As of October 29, foreign institutions have net sold over $10 billion worth of Indian stocks.

Citigroup analysis points out: Continued outflow of foreign capital may weigh on the short-term performance of the Indian stock market. Despite the correction this month, valuations still remain high, with most indicators still above one standard deviation from long-term average levels.

In conclusion, the Indian stock market is facing dual pressures from outflow of foreign capital and weak corporate profits, with future trends remaining uncertain.