(Bloomberg) -- India’s NSE Nifty 50 Index recorded its largest monthly decline since the March 2020 pandemic panic, amid persistent selling by overseas investors.
The benchmark gauge fell 6.2% in October, its first monthly loss since May, as weak earnings damp sentiment at a time when valuations are above historical averages. Foreign institutions have sold more than $10 billion worth of Indian equities on a net basis in the month through October 29.
Sustained foreign investor outflows could act as a drag on near-term performance, according to a Citigroup Inc. note. With this month’s correction, valuations are off peaks but remain near one standard deviation above long-term averages across most measures, the bank’s analysts said.
(updates monthly change after market close)
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