On September 29, 2026, the Indian stock market experienced significant losses as the Sensex fell over 700 points and the Nifty50 index traded below 22,600. This decline was driven by broad selling pressure across most sectors, especially banking and media, amid concerns over rising bond yields and crude oil prices.
- The Sensex dropped as much as 708 points during the day.
- The Nifty50 index reached an intraday low of 22,569.
- 13 of 15 major NSE sector indices traded lower, led by the Nifty Media index's 1.95% fall.
- Key banking stocks like HDFC Bank, Axis Bank, and ICICI Bank contributed to the decline.
- Defensive sectors such as pharma and healthcare saw some buying interest.
Why did the Sensex and Nifty50 fall sharply on September 29, 2026?
The market opened with a gap down and extended losses due to rising bond yields and crude oil prices. The yield on the 10-year US Treasury bond surged by 11 basis points to 5.27%, its highest in 19 years, which raised inflation concerns and expectations of further interest rate hikes by the US Federal Reserve. These factors caused investors to sell off stocks, especially in sensitive sectors like banking and finance.
Which sectors and stocks were most affected?
Among the 15 major sector indices compiled by the National Stock Exchange (NSE), 13 traded lower. The Nifty Media index fell by 1.95%, while sectors such as banking, financial services, auto, FMCG, IT, metal, PSU banks, consumer durables, and oil & gas declined between 0.6% and 1%. Key banking stocks including HDFC Bank, Axis Bank, Bajaj Finance, Kotak Mahindra Bank, and ICICI Bank were major contributors to the fall.
Reliance Industries and Hindustan Unilever, two heavyweight stocks in the Nifty50, hit fresh 52-week lows during the session. Tata Motors PV was the top loser in the Nifty50, dropping 2.8% to ₹274.
Did any sectors or stocks perform well despite the downturn?
Yes, defensive sectors like pharma and healthcare attracted buying interest. Stocks such as Dr Reddy's Laboratories, Cipla, and Sun Pharma gained during the session. Additionally, NCC shares rose by 5.37% after the company announced a ₹1,077 crore order from the Andhra Pradesh government for a rural water supply project.
How did global markets influence the Indian stock market?
Asian markets also traded lower, reflecting weak US market closures. Japan's Nikkei fell 1.1%, China's Shanghai Composite dropped 0.32%, Hong Kong's Hang Seng declined 0.64%, and South Korea's KOSPI decreased by 0.5%. The US Dow Jones Industrial Average, S&P 500, and Nasdaq indexes all closed sharply lower due to inflation fears and rising bond yields.
What was the overall market breadth on this day?
The market breadth was negative, with 2,218 shares declining and only 782 advancing on the NSE. The Nifty Midcap 100 and Smallcap 100 indexes also fell by 0.76% and 0.9%, respectively, indicating widespread selling pressure across market segments.
