The Indian stock markets experienced a significant downturn on September 30, 2024, followed by a modest recovery on October 1, 2024.
September 30: Major Sell-Off
On September 30, 2024, the BSE Sensex plummeted by 1,272 points, or 1.49%, closing at 84,299.78. Similarly, the NSE Nifty fell by 368 points, or 1.41%, to end at 25,810.85. The sell-off was driven by negative global cues, including rising geopolitical tensions in the Middle East and concerns over potential rate hikes in Japan, which dampened investor sentiment across global markets. Furthermore, premium valuations in the Indian market made it vulnerable to corrections.
Among sectors, auto stocks took the heaviest hit, with the Nifty Auto index down by 2.11%. Banking, financial services, and realty sectors also witnessed declines exceeding 1%. However, metal and media stocks provided some relief, gaining 1.12% and 1.33%, respectively.
Top Gainers (September 30):
- JSW Steel (+2.93%)
- NTPC (+1.45%)
- Tata Steel (+1.32%)
- Hindalco Industries (+1.27%)
Top Losers (September 30):
- Hero Motocorp (-4.02%)
- Reliance Industries (-3.30%)
- Axis Bank (-3.17%)
- Mahindra & Mahindra (-2.83%)
October 1: Modest Recovery
After the sharp decline on September 30, the markets opened on a positive note on October 1, 2024, with the Sensex rebounding by 310 points to trade at 84,610.51, and the Nifty gaining 90 points, reaching 25,901.75. The recovery was primarily driven by positive sentiment in global markets, especially in Asia, where key indices like Japan’s Nikkei surged.
In the early session, Tech Mahindra, Infosys, and L&T were among the top gainers, while NTPC, JSW Steel, and Tata Steel saw declines due to profit booking after their strong performance the previous day.
Outlook
Despite the short-term recovery, analysts caution that the market may face continued volatility due to high valuations and global uncertainties. The upcoming Q2 results season will be a critical factor, with many expecting a rebound in earnings after a sluggish Q1 performance.
Overall, while October began on a positive note, the broader market sentiment remains cautious with a focus on global and domestic economic developments.
