September was brutal for Indian stocks. The Nifty and Sensex fell about 6 per cent each, marking one of the weakest months in recent years and pushing indices to near six-month lows.

The biggest culprit was crude oil. Brent jumped above $106 a barrel after US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz. Since India imports most of its oil, costlier crude threatens inflation, the import bill and the rupee, which slid towards 96 per dollar.

Foreign investors fled. They sold over Rs 25,600 crore of Indian shares in September, taking this year’s selling past $25 billion. Higher global bond yields made dollar assets more attractive, pulling money out of emerging markets.

Domestic investors fought back. DIIs bought nearly Rs 65,000 crore in September, cushioning the fall. On September 28 alone, the Sensex crashed 1,124 points. Experts say oil prices and foreign flows will decide what comes next.