In September 2026, the Nifty 50 plunged 6.06%, (1,459 points), while the Bank Nifty declined 5.85%, (3,391 points). The Nifty closed in the red for the second consecutive month, while it also recorded eight consecutive weekly declines over the past two months — a historic streak last seen in 2001, nearly 25 years ago. After falling 11.3% in March 2026, September’s decline was the Nifty’s second-largest monthly fall this calendar year.
The ongoing seven-month US-Iran war without signs of a peace deal and the US 10-year Treasury yield, which rose 11.25% in September to 5.3%, its highest level since 2007, weighed on sentiment. On September 16, the US Federal Reserve unanimously raised the federal funds rate by 25 bps to 4.00%, its first hike in more than three years.
Rate-sensitive IT stocks fell sharply, with the Nifty IT index declining 11.18%. Financial stocks fell 6.25% as proposed caps on insurance distribution commissions pressured insurers and allied lenders. The long-awaited NSE IPO listed at a modest 1.85% premium, while the large IPO pipeline further drained liquidity from listed stocks. Except for Media, which gained 1.66%, all sectoral indices closed in the red, with IT (-11.18%), Consumer Durables (-9.41%), and Auto (-8.83%) among the top draggers.
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