The Nifty 50’s 3.4 per cent fall in September was its worst month since the pandemic crash of March 2020. Here is what drove the sell-off and what could turn it around.

Foreign investors sold about 3.2 billion dollars of Indian shares. A key trigger was the US decision to sharply raise H-1B visa fees, which hammered IT stocks that depend on American business. Fresh tariff threats from Washington added to the gloom.

The falling rupee made things worse. As the currency weakened, foreign funds pulled money out faster, creating a cycle of selling pressure.

There were some bright spots. Hopes of an India-US trade deal limited the damage late in the month. Analysts say October could see a rebound, with beaten-down IT and banking stocks leading if trade talks progress. For long-term investors, sharp corrections have historically been buying opportunities in Indian equities.

For everyday investors, analysts advise against panic selling during corrections. Systematic investment plans have historically smoothed out such volatile phases in Indian markets.