Indian stocks continued to decline on Thursday, marking the worst monthly performance since March 2020. In October, record outflows of foreign capital and sluggish corporate profits dampened investor sentiment.

Today, the Indian NSE Nifty 50 index fell by 0.56% to 24,205.35 points. While the BSE Sensex index dropped by 0.69% to 79,389.06 points. Both benchmarks fell by around 6% in October, marking their worst monthly performance since the significant global market decline caused by the COVID-19 pandemic in March 2020.

Indian Nifty 50 recorded its worst monthly performance since March 2020.

At the same time, these two major indices also ended a four-month winning streak. During this period, due to policy continuity and macroeconomic stability after the Indian national elections, they rose by about 15%.

Global investment research firm MRB Partners stated in a report: "Record outflows of foreign capital and a slowdown in profits in the Indian stock market have put pressure on the Indian stock market in October."

As of Wednesday, foreign institutional investors (FIIs) have been net sellers of Indian stocks for 23 consecutive trading days, selling stocks worth $11 billion in October, marking the highest monthly outflow on record.

In October, foreign investment outflows from the Indian stock market will hit a historical high.

Ajit Mishra, Senior Vice President of Online Trading Service Provider Religare Broking, said: "The key to monitor next is how Foreign Institutional Investors (FIIs) will position themselves in November after the selling in October."

In October, automobile and consumer stocks fell by 13% and 10% respectively, one of the largest monthly declines, mainly due to weak quarterly earnings of major components like Maruti Suzuki and Hindustan Unilever, as well as concerns about demand outlook.

Small and mid-cap stocks, more focused on the domestic market of India, declined by 3% and 6.7% respectively.

All major stock indexes in India fell in October.

IT stocks (NIFTYIT) fell by 3% on Thursday, leading the benchmark index lower, tracking the sell-off in global technology stocks.

In terms of losses, the IT index fell by about 3.7% this month, mainly due to Thursday's losses. In contrast, the Nifty 50 index fell by 6.2%.

Siddhartha Khemka, Head of Wealth Management Research at Motilal Oswal Financial Services, said, "The uncertainty surrounding the U.S. presidential election on November 5th could put pressure on the Indian market and lead to further volatility in the coming trading days."

In October, the volatility index (NIFVIX) surged by about 22% to 15.55 points, marking the largest monthly increase since a 91% rise before India's national election results in May and a 30% rise in February 2022.

The Indian stock market will have a special trading session on Friday from 6 to 7 p.m. Indian Standard Time to commemorate the Festival of Lights. Normal trading will resume on November 4th.