Indian Benchmarks Snap Four-Day Rally on Tuesday; IT, Financials Weigh Down Markets
Markets opened higher Wednesday, supported by easing crude prices and Middle East de-escalation hopes, but FII outflows persist.
The story
On Tuesday, September 22, Indian benchmark indices concluded lower, bringing an end to a four-day winning streak. The Sensex declined by 329.91 points, or 0.44%, settling at 74,529.08, while the Nifty50 fell 85.30 points, or 0.36%, to close at 23,329.00.
Selling pressure was evident across information technology, financial, and capital goods sectors, with heavyweights like HDFC Bank, ICICI Bank, and Reliance Industries contributing to the decline. Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹3,809.99 crore in the cash segment.
However, Domestic Institutional Investors (DIIs) provided a counterbalance, buying shares worth ₹4,120.07 crore. The Indian rupee strengthened by approximately 20 paise to 95.59 against the US dollar, aided by a pullback in crude oil prices. On Wednesday, September 23, Indian markets opened higher, with the Sensex rising over 160 points and the Nifty gaining around 50 points in early trade, supported by softer crude oil prices and hopes of de-escalation in the Middle East.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 23,329.00 | -85.30 points (-0.36%) |
| Sensex | 74,529.08 | -329.91 points (-0.44%) |
| Bank Nifty | 56,215.55 | -0.45% |
| USD/INR | 95.59 | Strengthened by 20 paise |
| India 10Y yield | 7.0052% | -0.0054% |
| India VIX | 10.52 | -0.48 points (-4.36%) |
Flows & data
| Item | Reading | Read |
|---|---|---|
| FII Net (Cash Segment) | -₹3,809.99 crore (September 22, 2026) | Foreign Institutional Investors were net sellers in Indian equities. |
| DII Net (Cash Segment) | +₹4,120.07 crore (September 22, 2026) | Domestic Institutional Investors provided buying support to the market. |
IPOs & the primary market
September has emerged as a bustling month for India's primary market, with 30 mainboard IPOs launched so far, the highest monthly tally since December 1996, raising approximately ₹38,785 crore. On Wednesday, September 23, several issues opened for subscription, including mainboard IPOs for Adroit Industries, Elevate Campuses, Swastika Infra, and ArMee Infotech.
SME IPOs from Unitec Fibres, S.K.Offset, Liqvd Digital, Pooja Logistics, and Coreintegra Consulting also commenced subscriptions. Meanwhile, SS Retail made a strong debut, listing at ₹639.10 per share against its ₹424 IPO price, a 50.73% premium. Jindal Supreme and Hero Motors also listed today.
Valuation watch — India & global
No new specific data on India or global PE multiples or CAPE ratios has been released. The broader market sentiment continues to be influenced by sustained domestic institutional buying, which has provided a cushion against consistent foreign institutional outflows. This divergence in flows highlights the ongoing domestic liquidity support for Indian equities, even as global factors like crude oil prices and geopolitical developments remain key considerations.
Monsoon watch
As the southwest monsoon approaches its withdrawal, India continues to face a rainfall deficit. As of September 7, the nationwide rainfall deficit stood at approximately 14%.
The India Meteorological Department (IMD) forecasts continued below-normal rainfall for the remainder of September, indicating that the deficit is unlikely to narrow significantly. Kharif crop sowing, as of September 4, covered about 108.6 million hectares, which is roughly 1.63% below the normal sown area. Reservoir levels remained below last year's figures for most of July, and an intensifying El Niño is expected to further impact the season through September.
What we'll be watching
- Upcoming RBI monetary policy decision
- Further FII and DII activity in Indian equities
- Global crude oil price movements
- Subscription and listing performances of ongoing IPOs
- Developments in the Middle East geopolitical situation
Reporting + analyst voices: grounded via Google Search at publish time.