Sensex ends in red, Nifty Bank rebounds over 900 points: 6 reasons behind today’s move

The equity benchmark indices BSE Sensex and NSE Nifty ended lower on Friday (September 11), but recovered sharply from the day's lows as financial stocks led the rebound, with the Nifty Bank recovering over 900 points from its low.

The Sensex slipped 121 points to 74,782, while the Nifty fell 80 points to 23,398. The Nifty Bank ended 135 points higher at 56,607, while the Nifty Midcap index declined 160 points to 62,197. HDFC Bank and Kotak Bank were among the top contributors to the recovery in the banking index.

So, what drove the market's weakness today, and what helped the indices recover from their lows?

1. Financial stocks stage a sharp recovery

Banking stocks led the recovery in the final part of the session. The Nifty Bank recovered more than 900 points from the day's low to end 135 points higher at 56,607.

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HDFC Bank and Kotak Bank were among the top contributors to the recovery. Banks largely ended off their lows, with Yes Bank among the top gainers, rising 5%.

2. Realty stocks fall as rate hike expectations rise

Realty stocks saw heavy selling pressure as expectations of a rate hike increased. Godrej Properties fell 7%, among the biggest losers in the sector.

3. Cochin Shipyard plunges on FY27 guidance

Cochin Shipyard declined 9% after the company gave cautious guidance for FY27, making it one of the biggest losers in the session.

4. PI Industries slips after client cuts guidance

PI Industries fell more than 4% after Kumiai, one of the company's biggest clients, cut its guidance.

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5. Metals and building-material stocks remain under pressure

Metal-related stocks declined, tracking lower prices, with NALCO, Hindustan Zinc and NMDC falling 2-3%. Supreme Industries and Astral also slipped around 4% each on demand concerns.

6. Buying emerges in select IT, capital-market and fintech stocks

There was buying in select IT stocks at lower levels, with Tech Mahindra and Wipro gaining around 1% each. Dr Reddy's Laboratories was among the top Nifty gainers, ending 2% higher.

Capital-market stocks also moved higher in the last hour of trade. BSE and Angel ended 5% off their lows. Fintech stocks also saw a strong move, with Paytm, Pine Labs and MobiKwik rising up to 5%.

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From the Sensex basket, Dr Reddy's Laboratories Ltd, HDFC Bank Ltd, Tech Mahindra Ltd, HCL Technologies Ltd, ITC Ltd and Wipro Ltd were the major gainers.

Hindalco Industries Ltd, JSW Steel Ltd, Tata Steel Ltd, Eicher Motors Ltd, Cipla Ltd, Bajaj Auto Ltd and NTPC Ltd were the biggest laggards.

Market This Week

The equity benchmark indices fell for the fifth straight week, marking the longest losing streak in 14 months. The Sensex and Nifty declined 2% each, while the Nifty Bank and Nifty Midcap index slipped 1% each during the week.

Among sectoral indices, realty and IT were the biggest losers, with both indices declining 6% each. More than 40 Nifty stocks fell during the week, with losses extending up to 8%. Three of the top five Nifty losers were from the IT sector — Infosys, HCLTech and Wipro.

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On the gaining side, Max Healthcare Institute, Adani Enterprises, Adani Ports and Apollo Hospitals were among the top Nifty gainers during the week.

Among midcap stocks, Paytm, Bandhan Bank, Laurus Labs, Blue Star and Yes Bank were the top gainers. Godrej Properties, Lodha, Steel Authority of India (SAIL), PI Industries and Cochin Shipyard were among the top midcap losers.