Indian Markets Enter October Under Pressure as FII Selling Hits Six-Month High

Indian equities enter the October trading series after another weak session, with the Nifty 50 falling 0.42% to 22,620.45 on September 30 and the Sensex declining 48.78 points to 72,480.29. The decline came as investors remained cautious about elevated crude prices, global uncertainty and continued foreign selling.

FII selling intensifies

Foreign institutional investors sold ₹10,148.41 crore of Indian equities on September 30, their largest single-day outflow in nearly six months, according to Moneycontrol. FIIs have now been net sellers in 16 of the 21 trading sessions in September, taking cumulative monthly selling to about ₹44,013 crore.

Domestic institutional investors provided a significant counterbalance, purchasing ₹11,272 crore on September 30. DIIs were net buyers throughout all 21 trading sessions of September, with cumulative purchases of approximately ₹76,030 crore during the month.

October begins with a cautious setup

Reuters reported that the September derivatives series showed a clear increase in bearish positioning. The Nifty declined 6.7% during the September series, while foreign investors increased their index-futures short positions substantially.

The positioning reflects continued caution among overseas investors as global bond yields remain elevated and uncertainty around global markets persists.

Crude oil remains an important risk

Higher crude prices remain a key concern for Indian equities because India is heavily dependent on imported oil. Rising energy costs can affect inflation, the import bill and corporate margins, making oil prices an important variable for investors entering the new month.

What investors should watch

• FII and DII flows during the first sessions of October
• Brent crude and other energy prices
• US Treasury yields and global risk sentiment
• Whether the Nifty can stabilize after its September decline
• Corporate developments and stocks in focus during the new trading series

The combination of heavy foreign selling, elevated global yields and crude-oil volatility means market direction is likely to remain sensitive to global cues as October trading gets underway.