Taking Stock: Nifty hits five-month low below 23,200; Sensex tanks 778 points

As per the latest business developments, Indian equity indices ended softer for the second consecutive session amid heightened volatility on September 15, with selling noted across sectors barring IT.

Investor sentiment remained wary ahead of the US The US central bank’s policy decision, while elevated oil price marks and rising US bond yields further noted to the pressure.

Despite mixed global cues, the market opened on a firm note but failed to sustain the upside, turning negative in the initial hours as selling intensified through the session. The Nifty eased to a low of 23,118.60, hitting a fresh five-month low.

At close, the Sensex was down 777.94 points or 1.04 percent at 74,003.82, and the Nifty was down 279.50 points or 1.19 percent at 23,118.60.

Broader indices underperformed the main indices, with Nifty Midcap and Smallcap indices shedding more than 2% each.

Biggest Nifty losers were Bharat Electronics, Shriram Finance, Adani Enterprises, Interglobe Aviation, Grasim Industries, while gainers included HCL Technologies, Infosys, TCS, Tech Mahindra and Wipro.

Except IT, all other sectoral indices ended in the red with Realty index down 4%, while auto, consumer durables, energy, metal, media and PSU Bank down 2% each.

More than 160 stocks touched 52-week low, including HEG, Havells India, Ircon International, Motherson Sumi Wiring India, Jupiter Wagons, India Cements, Shree Cement, SBI Life Insurance, ICICI Lombard General Insurance, Ambuja Cements, Rail Vikas Nigam, IRFC, ACC, Bank of Baroda, Cello World, Indian Energy Exchange (IEX), Bikaji Foods, Reliance Industries, IRCTC and P&G Hygiene and Health Care., among others. Click to View More

Among individual stocks, Indiabulls shares advanced 5% after the firm executed a definitive agreement with Fintech Cloud, ACME Solar advanced 3.7% after HSBC maintained its ‘buy’ rating and boosted the target price to ₹450 per share.

Coforge declined 4% after its non-executive independent director and chairperson of the Nomination and Remuneration Committee resigned. Diamond Power stock price further noted 5% on Letter of Award from Adani Electricity Mumbai Limited (AEML) for the supply of additional medium voltage and low voltage underground power cables.

HDFC Bank advanced more than 1% after its board submitted two CEO candidates to the RBI, while Solar Industries declined 13.7% after its subsidiary announced plans to acquire a stake in Omnia Holdings.

The Indian indian rupee extended its losing streak for the fifth consecutive session, ending at the day’s low of 95.96 per dollar on Tuesday, down 41 paise from the previous close of 95.55.

Pranav Constructions shares ended 6.5% elevated at Rs 132 after making a firm debut on the NSE at ₹165 per share, a 33.06% premium over the offering price. Outlook for September 16

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the key market indices witnessed earnings booking at elevated marks. The Nifty ended 280 points down, while the Sensex was down by 778 points. Among sectors, the Defense index lost the most, shedding nearly 6 percent, whereas despite weak market sentiment, the IT index advanced 2.15 percent.

Technically, after a gap-up opening, the market consistently faced selling pressure at elevated marks. From the day's highest point, the market shed over 450/1400 points. Additionally, on daily charts, it has formed a long bearish candle, and on intraday charts, it still holds a softer top formation, indicating further softness from the current marks.

We believe that, as long as the market is trading below 23,250/74,300 marks, the correction is likely to continue. On the downside, the market could slip to 23,000/73,700. Further downward movement may additionally continue, potentially dragging the index to 22,900-22,850/73,500-73,300. On the flip side, above 23,250/74,300, the pullback move could extend to 23,400-23,450/74,500-74,800.

The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.

Vinod Nair, Head of Research, Geojit Investments

Domestic markets remained under pressure, extending their recent correction as elevated oil price marks and rising global bond yields weighed on sentiment. Market participants stayed wary ahead of key central bank meetings the current week, with growing expectations of further policy tightening by major economies. Concerns around a prolonged high-interest-rate environment, particularly in the US, kept Treasury yields near multi-year highs and continued to dampen emerging market sentiment amid persistent foreign outflows.

Mid- and small-cap stocks lagged key market indices, while most sectors closed sharply softer. That stated, IT stocks outperformed as comments suggesting slower AI development eased concerns over the rapid disruption of traditional IT services.

In the near term, sustained high crude prices and elevated bond yields may keep pressure risk appetite, though firm domestic fundamentals and value buying by local market participants could help contain downside risks.