The Indian stock market finished the final trading session of September in the red, as the relief rally lost steam with investors booking profits at higher levels, while a rebound in crude oil prices also weighed on sentiment.
Both key indices opened the session higher and, at their intraday highs, recorded gains of 0.40% before giving up all those gains and turning lower. September marked one of the worst months for domestic equities since the March crash, as the ongoing war in West Asia and a lack of supportive factors turned Dalal Street into one of the worst-performing markets in Asia.
Indian stock market today
The Nifty 50 closed Wednesday’s session with a drop of 0.42% at 22,620, remaining below the key technical level of 23,000 for the third consecutive day. The Sensex also closed the session with a mild drop of 0.07% at 72,480.
The broader markets, however, managed to break their recent losing streak, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices closing higher. Sectoral performance was mixed, with realty, cement, chemicals, private banks, and PSU banks closing higher, while pharma, metals, consumer durables, and FMCG stocks logged losses.
For September, the Nifty 50 and Sensex dropped 6% and 5.82%, respectively. It was their worst monthly decline after posting double-digit losses in March.
Turning to commodities, Brent crude rose back towards $97 a barrel on Wednesday and was heading for a monthly gain of more than 7%, as uncertainty over US-Iran negotiations continued to support prices.
Mediators continued to work with the United States and Iran to reach a deal to end the fighting and reopen the Strait of Hormuz. US President Donald Trump over the weekend rejected an offer from Tehran to reopen the key waterway.
Asian markets trade mixed as Japan leads gains
Among other key Asian markets, Japan’s benchmark Nikkei 225 jumped 1.9% to finish at 66,753.72. Australia’s S&P/ASX 200 gained 0.9% to close at 8,789.30. South Korea’s Kospi reversed its earlier gains and fell 0.5% to 6,838.04. Hong Kong’s Hang Seng rose 0.4% to 24,613.10, while the Shanghai Composite gained 0.3% to 3,842.19.
SoftBank Group Corp., which invests in OpenAI, surged more than 6% in Tokyo trading. Japanese chip-related stocks, including Renesas Electronics and Rohm Co., also gained.
Nifty tests key 22,600 support amid weak sentiment
Rupak De, Senior Technical Analyst at LKP Securities, said the index formed two back-to-back reversal patterns, with a hammer pattern followed by an inverted hammer pattern. However, sentiment remains highly weak, as strength in crude oil and the 10-year US bond yield continues to keep bullishness in check.
Today, Nifty again faced resistance at higher levels and made a high around the 20 EMA on the hourly chart, leading to a fall towards the end of the session. Going forward, 22,600 is likely to act as a crucial support. A decisive fall below 22,600 might trigger a sharper correction. On the other hand, if the index sustains above 22,600, it might witness a meaningful recovery.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said technically, the Nifty has reached the crucial 22,600–22,580 zone around its weekly 200-SMA. A sustained break could extend the decline towards 22,400, while 22,800 is the first recovery hurdle. Bank Nifty’s rebound offers some support, but it must reclaim its weekly 100-SMA near 55,175 to indicate a stronger reversal. India’s VIX rose to 13.52, and the PCR remained weak at 0.65, reflecting defensive positioning and limited confidence in the rebound.
Hariselvan Radhakrishnan added that holding the weekly 200-SMA could produce a mean-reversion bounce, particularly if banks continue to outperform. However, a durable recovery requires the Nifty to move above 22,800 initially, supported by easing global yields and improved breadth; otherwise, rallies may continue to attract selling.
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