In September, Indian markets enjoyed a series of record highs, but on the final trading day of the month, investors opted for profit booking, leading to a sharp correction. Both the Nifty 50 and the Sensex fell by over 1.4% today, marking their steepest intraday decline in two months.
Both indexes finished the month higher despite this decline, with real estate and metals leading the increase. An aggressive interest rate decrease by the US Federal Reserve and long-awaited stimulus measures from China helped to boost investor mood.
Foreign portfolio investor (FPI) inflows were substantial as a result of these global developments, which increased market confidence and bolstered the already robust domestic inflows.
Furthermore, the market’s ascent to record-high levels was aided by favorable monsoon conditions, strong domestic liquidity, and declining commodity prices, particularly for oil.
A strong monsoon season combined with rising metal prices caused a notable spike in metal and FMCG equities. While the IT sector gained traction with a comeback in deal signings, signaling a recovery in company activity and technological investments, the banking sector also saw a noteworthy rotation, reflecting shifting investor preferences.
In anticipation of a boost in sales over the upcoming holiday season, auto stocks have also resumed their upward trend this month.
Impressively, the Nifty 50 has set new record highs more than 50 times over the past nine months. Its latest milestone occurred during Friday’s trading session, when it surpassed the 26,250 mark, reaching an all-time high of 26,277 points