India’s Nifty 50 fell 3.4 per cent in September, its worst monthly slide since March 2020, as foreign investors pulled out billions amid tariff and visa worries.

The index ended September at 25,720.35, closing almost flat on the final day, while the Sensex settled at 84,060.74. Foreign institutional investors sold about 3.2 billion dollars of Indian shares during the month.

Analysts blamed a mix of factors: US tariff uncertainty, a sharp hike in H-1B visa fees hitting IT stocks, and a weakening rupee. Hopes of an India-US trade deal offered some support late in the month.

Market watchers now expect October to bring selective buying, with IT and financial stocks seen as likely leaders if trade talks progress. The Nifty’s September fall was its steepest since the pandemic crash of March 2020, when it dropped more than 5 per cent.

September’s fall ended a volatile quarter for Indian equities. Traders will now watch the Reserve Bank’s policy stance and quarterly earnings for direction.