Closing Bell: Nifty 50 Records Worst September Fall Since 2018; Extends Previous Losses

Market Update at 04:00 PM: The Indian benchmark equity indices, the Sensex and Nifty 50, closed lower on Wednesday after a two-day selloff, as persistent foreign selling and elevated crude oil prices continued to weigh on investor sentiment.

The Nifty 50 remained under pressure throughout the session. The index opened at 22,665 and initially witnessed buying interest, moving towards the day’s high of 22,809.35 during the afternoon session. However, profit booking emerged at higher levels, dragging the index below the 22,700 mark in the final hour. The index touched an Intraday low of 22,595.20, indicating renewed selling pressure near higher levels.

At close, the Nifty 50 settled at 22,620.45, down 95.75 points, or 0.42 per cent. The Sensex ended lower by 48.78 points, or 0.07 per cent, at 72,480.29. Meanwhile, the Bank Nifty outperformed the benchmark indices, closing higher by 0.69 per cent. The India VIX remained steady.

The Nifty 50 recorded its weakest September performance since 2018, according to historical seasonality data. The index also ended the July-September quarter, corresponding to Q2 FY27, with a decline of more than 5 per cent. Persistent foreign outflows, global uncertainties and pressure across key sectors contributed to the challenging quarter for Indian equities.

The IT index emerged as the worst-performing sector in September, declining 11.18 per cent during the month. The fall marked its steepest September performance in nearly two decades, as concerns over global technology spending, artificial intelligence-led disruption, demand uncertainty and stretched valuations weighed on IT stocks.

Brent crude climbed back towards USD 97 per barrel on Wednesday and was on track for a monthly gain of more than 7 per cent, as uncertainty surrounding U.S.-Iran negotiations kept supply concerns elevated. While Saudi Arabia has restored shipments through the East-West pipeline, with Middle East crude exports recovering close to pre-war levels at around 17.5 million barrels per day, market participants continued to monitor diplomatic developments around the Strait of Hormuz.

U.S. inventory data showed higher crude and gasoline stocks, while distillate inventories declined. Official data from the U.S. Energy Information Administration is expected to provide further direction to crude oil prices.

The broader market ended marginally higher. The Nifty Midcap 100 index gained 0.02 per cent, while the Nifty Smallcap 100 index rose 0.27 per cent.

On the sectoral front, eight of the 11 key sectoral indices ended in positive territory. The Nifty Media index gained 0.78 per cent, led by Sun TV Network, which surged more than 7 per cent. In contrast, the Nifty Pharma index declined 1.84 per cent, recording the biggest sectoral fall during the session and also registering the largest decline among the key sectoral indices for September.

Among individual stocks, Power Mech Projects gained around 2 per cent after the engineering company won an order worth USD 57.2 million.

Within the Nifty 50, ICICI Bank was the biggest positive contributor, adding 46.05 points to the index, followed by Kotak Mahindra Bank with a contribution of 17.63 points and Axis Bank with 8.69 points. On the other hand, HDFC Bank was the biggest drag, reducing the index by 46.70 points, followed by Infosys at 16.40 points and Eternal at 12.37 points.

Market breadth remained in favour of declining stocks on September 30, 2026. Of the 3,685 stocks traded on the NSE, 1,740 advanced, 1,813 declined and 132 remained unchanged.

A total of 111 stocks touched their 52-week highs, while 130 stocks hit their 52-week lows. Additionally, 139 stocks were locked in their Upper Circuits, whereas 97 stocks hit their Lower Circuits.

Market Update at 2:30 PM: The Nifty 50 and Sensex traded higher on Wednesday, tracking gains in IT stocks, while broader market indices also remained in positive territory.

As of 2:00 PM, the Sensex rose 315.62 points or 0.44 per cent to 72,844.69, while the Nifty 50 gained 30.85 points or 0.14 per cent to 22,747.05.

Among Nifty 50 stocks, BSE, Max Healthcare Institute, and Dr. Reddy's Laboratories were the Top Losers.

In the broader markets, the Nifty MidCap 100 and Nifty SmallCap 100 were trading 0.62 per cent and 1.05 per cent higher, respectively.

Sector-wise, the Nifty Chemical, Nifty IT, Nifty PSU Bank, and Nifty Oil and Gas indices outperformed, while the Nifty Healthcare index declined the most.

Market Update at 12:15 PM: The Nifty 50 and Sensex traded in a narrow range as oil price volatility and continued U.S.-Iran tensions weighed on investor risk appetite.

As of 12:00 PM, the Sensex rose 298.54 points or 0.41 per cent to 72,827.61, while the Nifty 50 gained 26.30 points or 0.12 per cent to 22,742.50.

BSE, Max Healthcare Institute and Dr. Reddy's Laboratories were the top losers in the Nifty 50 index.

In the broader markets, the Nifty MidCap 100 and Nifty SmallCap 100 were trading lower by 0.72 per cent and 0.83 per cent, respectively, indicating continued weakness beyond the benchmark indices.

Among sectors, Nifty Chemical, Nifty IT, Nifty PSU Bank and Nifty Oil and Gas outperformed, while Nifty Healthcare declined the most.

Market Update at 09:30 AM: The Nifty 50 and the Sensex were trading in a narrow range on Wednesday as oil price volatility and ongoing U.S.-Iran tensions continued to weigh on risk appetite.

As of 9:19 AM, the Sensex was up 57.42 points or 0.08 per cent at 72,586.49, while the Nifty 50 was down 11.15 points or 0.05 per cent at 22,705.05.

BSE, Max Healthcare Institute, and Dr. Reddy's Laboratories were among the top losers in the Nifty 50 index.

In the broader market, the Nifty MidCap 100 and Nifty SmallCap 100 were trading 0.72 per cent and 0.83 per cent lower, respectively.

Sector-wise, Nifty Chemical, Nifty IT, Nifty PSU Bank, and Nifty Oil and Gas were outperforming, while Nifty Healthcare declined the most.

On the IPO front, Nityas Gems & Jewellery and Vishal Nirmiti are opening their initial public offerings (IPOs) for subscription in the mainboard segment.

In the SME segment, IPOs of TNA Solutions, Acme India Industries, Paramount Syntex, Omara Ventures India, Sollfege Smart Electronics, Eventions, SJP Ultrasonics, and Dove Soft are opening for subscription.

Meanwhile, the IPOs of EverestIMS Technologies, Vans Electroengineerings, Papadmalji Agro Foods, and Black Opal Consultants are entering their second day of subscription.

SRIT India and Shah Investor's Home are entering the final day of subscription on Tuesday. In the SME segment, the IPOs of Acme Universal Safezone 9, Shivchem Agro, and Pind Hospitality are also entering their final day of subscription.

In terms of IPO listings, Swastika Infra, ArMee Infotech, Elevate Campuses, and Adroit Industries are scheduled to debut on the exchanges on Wednesday.

Pre-Market Update at 7:40 AM: Indian equity markets are likely to open cautiously on Wednesday as GIFT Nifty signals a muted start, while crude oil, elevated U.S. Treasury yields and sustained foreign selling remain key concerns. However, gains across several Asian markets and contained volatility could limit immediate downside after the Nifty 50 recently slipped to a six-month low.

The Nifty 50 fell sharply on Tuesday, declining 64.05 points or 0.28 per cent to close at 22,716.20. The index moved between an intraday low of 22,569.65 and a high of 22,753.25 after falling as much as 211 points during the session. The benchmark has also recorded an eight-week losing streak, its longest since 2020, keeping market sentiment cautious.

GIFT Nifty on the NSE IX traded around 22,802, down 28 points, signalling a muted start for the Nifty 50 on Wednesday. Another market reading placed GIFT Nifty around 22,824, down 6 points or 0.03 per cent from the previous close of 22,830, indicating limited directional bias at the opening.

From a technical perspective, immediate resistance for the Nifty 50 is seen in the 22,800-22,900 zone, followed by a stronger hurdle around 23,000-23,100. On the downside, 22,550-22,500 remains the immediate support zone, followed by stronger support around 22,400-22,500. Tuesday's low of 22,569.65 is also an important near-term reference point.

India VIX, a measure of expected market volatility, declined 1.65 per cent to settle at 13.41. Despite the weakness in benchmark indices, the fall in volatility indicates that implied market volatility remained relatively contained.

Overseas markets provided mixed-to-positive cues. Asian stocks gained for the first time in three sessions as easing concerns over the oil market helped stabilise sentiment ahead of a crucial U.S. inflation reading. The dollar was also on track for its strongest monthly performance since June.

S&P 500 futures were up 0.1 per cent as of 10:09 a.m. Tokyo time, while Hang Seng futures declined 0.3 per cent. Japan's Topix gained 0.5 per cent and Australia's S&P/ASX 200 advanced 0.2 per cent. Euro Stoxx 50 futures rose 0.5 per cent.

U.S. stocks ended slightly lower on Tuesday as Treasury yields continued to rise ahead of key inflation and labour-market data. Investors also assessed comments from Federal Reserve officials for indications about the future path of interest rates. The S&P 500 declined 0.17 per cent to 7,670.84, the Nasdaq Composite slipped 0.09 per cent to 26,797.54, while the Dow Jones Industrial Average fell 0.26 per cent to 51,349.92.

The U.S. Treasury market remained a key pressure point, with the 10-year Treasury yield around 5.25-5.29 per cent. Higher yields can weigh on equity valuations and emerging-market assets by increasing borrowing costs and influencing global capital flows. Weak consumer confidence data also added to the cautious tone.

Crude oil prices rose on Wednesday after U.S. President Donald Trump denied that he would be willing to ease sanctions on Iran, while Qatar pushed for peace talks. Oil prices had declined in the previous session following signs of a recovery in crude supply from the Middle East. Brent crude was trading near USD 103 per barrel, while WTI crude was around USD 89.30 per barrel.

Elevated crude prices remain a concern for import-dependent sectors such as aviation and paints because of higher input costs, while upstream oil producers can benefit from stronger realisations. Developments surrounding the U.S.-Iran situation and Middle East supply remain important variables for domestic markets.

Gold prices remained steady on Wednesday but were on track for a monthly decline as expectations of higher interest rates weighed on the precious metal. COMEX gold was around USD 4,211 per ounce, while silver was near USD 61.74 per ounce.

The U.S. dollar remained close to this year's high against the euro and was on track for its largest monthly gain against the common currency in 14 months. The Dollar Index was around 101.41, supported by U.S. growth expectations and higher interest rates.

The Indian rupee settled marginally higher at around Rs 95.94 per U.S. dollar on Tuesday, remaining close to the psychologically important Rs 96 per dollar level. Another market reading placed the rupee near Rs 95.98 per U.S. dollar. Possible Reserve Bank of India intervention and a pullback in oil prices helped limit volatility.

Foreign portfolio investors remained heavy sellers in Indian equities. FIIs sold shares worth Rs 9,980.22 crore on Tuesday, while domestic institutional investors bought equities worth Rs 6,952.71 crore. Continued foreign selling remains one of the key factors weighing on domestic market sentiment, although DII buying is providing some support.

The Sensex closed at 72,529.07 on Tuesday, declining 0.33 per cent. Bank Nifty ended at 54,259.95, down 0.39 per cent. Bank Nifty could face resistance near 54,600, while 54,000 remains an important support level.

SAIL is under the F&O ban for Wednesday. Securities enter the F&O ban period when their position crosses 95 per cent of the market-wide position limit.

On the domestic front, no major macroeconomic data release or RBI policy announcement for Wednesday morning was verified in the available information. Investors are likely to monitor corporate announcements, crude oil movements, currency trends and foreign fund flows during the session.

Pharmaceutical stocks could remain in focus after reports of tariff exemptions for certain speciality drug exports to the U.S. Sun Pharma and Aurobindo Pharma may attract attention following the development involving Indian pharmaceutical exports.

Tata Steel, Poonawalla Fincorp, Cummins India and KPI Green Energy are also likely to remain on the radar amid company-specific developments and sector-related news. Renewable energy stocks could remain in focus following developments in the sector.

Overall, domestic equities are likely to begin Wednesday's session with a cautious bias. Traders will track the 22,800-22,900 resistance zone and the 22,550-22,500 support area, while movements in crude oil, U.S. bond yields, the rupee and FII flows could influence market direction.

Disclaimer: The article is for informational purposes only and not investment advice.

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