September was a month of mixed fortunes for Indian investors. While the market witnessed a strong upward trend, culminating in a high of 26,277 on Nifty, the month ended with a sharp sell-off. The BSE Sensex plummeted by 1,272.07 points, and the Nifty 50 dropped by 368.10 points on the last trading day, touching 25,810.85. This marked the worst single-day decline for both indices in nearly two months.
Factors Driving the Decline in Nifty50
Several factors contributed to the market’s downturn:
- Foreign Institutional Investor (FII) Outflow: FIIs shifted their focus to the Chinese market following economic stimulus measures announced by the Chinese government.
- Geopolitical Tensions: The escalating conflict in West Asia, particularly the Israeli strikes on Lebanon, created uncertainty in global markets.
- Shift in Japanese Leadership: The change in leadership in Japan also added to market volatility.
Stock Market Sector Performance in September
While the overall share market experienced a decline, certain sectors outperformed others:
- Metals: The metals sector thrived due to rising commodity prices and increased demand from infrastructure projects.
- IT: The IT sector continued its strong performance, driven by robust export growth and sustained demand for technology services.
- Banking: The banking sector faced challenges amidst rising interest rates and concerns about credit quality.
- FMCG: The FMCG sector exhibited mixed performance, with some companies benefiting from increased consumer spending while others faced cost pressures.
IPOs in September
September was a busy month for IPOs, with 60 IPOs, including 16 mainboards and 44 SME IPOs, making their debut. Notable IPOs included Bajaj Housing Finance IPO and P N Gadgil Jewellers.
Top 5 Gainers (as on 30 September, 2024)
| Symbol | Open | High | Low | Prev. Close | LTP | %Change | Volume (Shares) | Value (₹ Lakhs) |
| JSWSTEEL | 1,004.00 | 1,032.90 | 1,004.00 | 1,001.55 | 1,030.00 | 2.84 | 42,50,590 | 43,589.38 |
| NTPC | 436.9 | 448.45 | 433.6 | 436.9 | 443 | 1.4 | 2,09,03,229 | 92,337.92 |
| BRITANNIA | 6,252.65 | 6,362.90 | 6,241.10 | 6,268.80 | 6,339.00 | 1.12 | 4,42,617 | 28,013.27 |
| HINDALCO | 750 | 764.45 | 749.45 | 747.15 | 755 | 1.05 | 85,66,640 | 64,985.67 |
| TATASTEEL | 167.5 | 170.18 | 167.26 | 166.55 | 168.11 | 0.94 | 9,23,81,529 | 1,56,143.26 |
JSW Steel
JSW Steel, a leading player in India’s steel industry, has a significant domestic and international footprint. Renowned for its efficient operations and competitive costs, the company has solidified its position as a major steel producer. JSW Steel’s strategic expansion of production capacity and diversification into value-added steel products have been key drivers of its growth.
NTPC
NTPC, India’s leading power generation company, is crucial to meeting the nation’s energy needs. With a diverse portfolio of thermal, hydro, and renewable energy sources, NTPC is committed to sustainable power generation. The company’s operational efficiency and financial strength have contributed to its success. As NTPC continues to expand its capacity and invest in clean energy technologies, it remains a vital force in India’s energy sector.
Britannia Industries Ltd
Britannia Industries, a dominant force in India’s FMCG sector, is renowned for its biscuits and bakery products. Britannia has a strong market presence with a vast distribution network and a reputation for innovation. The company’s strategic expansion into new product categories has solidified its position as a leading consumer goods brand.
Hindalco Industries Ltd.
Hindalco Industries Ltd. is a flagship company of the Aditya Birla Group. The Co and its subsidiaries are primarily engaged in the production of Aluminium and Copper. With a global footprint and operations across the aluminum value chain, Hindalco serves diverse industries like construction, transportation, packaging, and consumer goods. The company’s commitment to sustainability and innovation and its focus on operational excellence position it as a key player in the aluminum market.
Tata Steel Ltd.
Tata Steel is a prominent global steel producer with a strong presence in India, the United Kingdom, the Netherlands, and Thailand. The company offers a wide range of steel products, catering to various industries such as construction, automotive, and manufacturing. As one of the world’s largest steel companies, Tata Steel is known for its operational excellence, innovative products, and commitment to sustainability. Tata Steel is highly known for its philanthropic activities and commitment to social responsibility.
Top 5 Losers (as on 30 September, 2024)
| Symbol | Open | High | Low | Prev. Close | LTP | %Change | Volume (Shares) | Value (₹ Lakhs) |
| HEROMOTOCO | 5,890.00 | 5,890.00 | 5,690.50 | 5,957.35 | 5,726.00 | -3.88 | 13,46,723 | 7.73E+04 |
| TRENT | 7,814.75 | 7,833.95 | 7,483.75 | 7,833.70 | 7,560.10 | -3.49 | 22,01,188 | 8.52E+04 |
| AXISBANK | 1,263.50 | 1,275.00 | 1,229.35 | 1,273.15 | 1,231.60 | -3.26 | 84,66,919 | 1,05,131.19 |
| RELIANCE | 3,038.80 | 3,049.95 | 2,948.80 | 3,052.35 | 2,958.00 | -3.09 | 1,35,04,407 | 4,02,085.62 |
| BEL | 293.45 | 294.6 | 283.6 | 293.45 | 284.4 | -3.08 | 3,26,95,169 | 9.38E+04 |
Hero MotoCorp Ltd.
Based in New Delhi, Hero Motocorp dominates the global two-wheeler market. Founded in 1984, the company has been the world’s largest motorcycle and scooter manufacturer by unit sales since 2001. It enjoys a significant share of India’s domestic motorcycle market, reinforcing its leadership in the two-wheeler segment. With a global network exceeding 10,000 customer touchpoints, Hero MotoCorp ensures extensive market coverage. The company also operates in 47 countries, providing its products to a diverse international customer base.
Trent
Trent Ltd., a subsidiary of the Tata Group, is a leading retail operator in India. The company operates a diverse portfolio of retail formats, including department stores, hypermarkets, supermarkets, and specialty stores. Trent’s flagship brands are Westside, a popular fashion retailer, and Star Bazaar, a hypermarket chain. The company also operates Landmark, a family entertainment store offering books, toys, and sports merchandise. The company operates online and physical stores, providing customers with convenient shopping options. With its strong brand presence and extensive product offerings, Trent has become a significant player in Indian retail.
Axis Bank
Axis Bank, a leading financial services provider in India, offers a comprehensive range of banking solutions. It is the third largest private sector bank in India. From personal accounts and loans to corporate banking and treasury services, Axis Bank caters to individuals, businesses, and government entities. The bank operates domestically and internationally, serving customers in India, the UK, Bangladesh, Singapore, and the UAE. With its diverse product offerings and robust network, Axis Bank is well-positioned to meet the evolving financial needs of its customers.
Reliance Industries Ltd
Reliance Industries, a multinational conglomerate, is a significant player in India’s economy. Reliance substantially influences the country’s business landscape with interests spanning petroleum, petrochemicals, refining, and retail. The company’s strategic investments in new energy, technology, and retail sectors demonstrate its commitment to future growth and innovation.
BEL
Bharat Electronics Limited (BEL) is a leading Indian defense electronics company specializing in designing, developing, and manufacturing advanced electronic systems. Beyond defense, BEL provides cybersecurity solutions, e-mobility systems, railway electronics, e-governance systems, homeland security solutions, civilian radars, turnkey projects, components and devices, and telecom and broadcast systems.
September was a rollercoaster ride for Indian investors. While the market witnessed significant gains throughout the month, the final day’s sell-off highlighted its inherent volatility. Understanding the factors driving these fluctuations is crucial for making informed investment decisions. As we move into October, seeing how the market responds to ongoing geopolitical developments and economic indicators will be interesting.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
