Bleak Winter! Why analysts are hinting at painful October even after 8 weeks of Nifty correction?

What happened: FIIs ended their two-month buying streak in September and sold heavily in Indian equities, with analysts expecting October to stay volatile rather than deliver an immediate recovery. Key numbers: Nifty fell about 6% in September, its worst September in eight years. Foreign outflows for 2026 crossed Rs 2.5 lakh crore, per NSDL data. US yields are above 5%. Why it matters: Analysts say a sustained recovery needs improvement in at least two of three factors, and domestic liquidity can cushion downside but not offset persistent foreign selling. Q2 earnings are the next big test.

FIIs ended their two-month buying streak in September and sold heavily in Indian equities, with analysts expecting October to stay volatile rather than deliver an immediate recovery.

Analysts say a sustained recovery needs improvement in at least two of three factors, and domestic liquidity can cushion downside but not offset persistent foreign selling. Q2 earnings are the next big test.