The average daily trading volume in NSE's cash segment dipped 4% in September to ₹1.15 lakh crore compared to ₹1.20 lakh crore in August, marking a six-month low according to The Hindu BusinessLine. This decline reflects persistent bearish sentiment amid consistent selling by foreign investors. In contrast, BSE turnover increased 5% to ₹11,081 crore from ₹10,590 crore in August, indicating mixed performance across exchanges. As per The Hindu BusinessLine, the new CAS settlement system has made intra-day trading exceedingly risky, significantly impacting daily trading volumes and contributing to the overall decline in market activity.
Both Nifty and Sensex declined 6% each due to global turmoil, marking the second consecutive month of negative closing for the key indices, as reported by The Hindu BusinessLine. Foreign portfolio investors pulled out $2.7 billion last month, bringing the total net outflow from India to $26.8 billion in 2026. The FPI selling was largely concentrated in large-cap stocks, putting further pressure on the benchmark indices. According to The Hindu BusinessLine, for the first time since the Covid crash, the Nifty 50's two-year returns have turned negative, highlighting the severity of the current market downturn.
The sharp rise in US bond yields forced many global investors to shift their investments from Indian equities to US bond markets, according to The Hindu BusinessLine. Additionally, steady rise in crude oil prices threatens India Inc's growth prospects, with companies potentially facing margin pressure due to increased input costs. Dr VK Vijayakumar from Geojit Investments noted that the market has been steadily trending down for the last two months due to elevated crude prices and high US bond yields. The sharp increase in crude oil prices has impacted India Inc's margin prospects, with companies facing potential pressure on margins in coming days due to increased input costs.
Sachin Gupta from Choice Broking observed that retail investors and traders are increasingly seeking clarity before committing fresh money rather than buying aggressively during uncertain conditions, as reported by The Hindu BusinessLine. Shrey Jain from InCred Money Broking noted that trading activity usually follows returns, and September was one of the weakest months for Indian equities this year. However, domestic money has not left equities entirely, with mutual funds buying a net ₹76,000 crore in September through domestic institutions, according to The Hindu BusinessLine. Vishal Trehan from Aikyam Capital Group noted that the 6% Nifty decline has prompted investors to moderate trading activity, though it presents opportunities for evolving investment preferences and alternative avenues for equity participation.
