It’s a Wrap: Nifty Falls 6.06% in September 2026 as Brent Crude Rises 8.33% and FIIs Sell

Mumbai | 6 October 2026 

The Nifty 50 lost 1,459.95 points in September and the BSE Sensex lost 4,476.98 points. The fall came after both indices ended a two-month winning streak in August. 

Why Did Indian Markets Fall in September? Five Key Factors 

Five factors drove the September sell-off. Conflict in the Middle East pushed up crude oil prices. Foreign investors sold more Indian shares than they bought. US bond yields climbed above 5%, the US Federal Reserve raised interest rates, and the rupee weakened against the US dollar. 

1. Middle East Conflict Pushed Brent Crude Up 8.33%

Fighting around the Strait of Hormuz, a key shipping route for oil, grew in the first week of September. The US struck three Iranian oil tankers, and Iran’s Islamic Revolutionary Guard Corps said it struck three tankers and three US-linked vessels. Saudi Aramco’s Jizan refinery came under attack on 7 September, for the second time in a month. 

Later in the month, attacks by Yemen’s Iran-backed Houthis on Saudi infrastructure and stalled talks between the US and Iran kept oil supply concerns high. Brent crude ended September at $98.03 a barrel, up 8.33% from $90.49 on 31 August. It closed at $108.75 on 15 September, its highest close of the month. 

2. FIIs Sold ₹44,012.82 Crore More Than They Bought

3. US 10-Year Bond Yield Crossed 5%

The yield on the 10-year US Treasury bond crossed 5% in mid-September, its highest level since 2007, and stood at 5.17% on 25 September. Higher US bond yields can draw money towards US government bonds and away from riskier shares in emerging markets such as India. 

4. US Federal Reserve Raised Rates to a 3.75% to 4.00% Range

Interest rates in the US also went up during the month. The US Federal Reserve (Fed) raised its key interest rate by 0.25 percentage point to a range of 3.75% to 4.00% on 16 September.  

5. Rupee Weakened to 95.948 Against the US Dollar

The rupee weakened to 95.948 against the US dollar on 30 September from 95.142 on 31 August. Dollar demand from state-run oil marketing companies and firm crude prices weighed on the currency. 

How Broad Was the Sell-Off in September? 

The fall spread beyond the largest companies. The Nifty Midcap 100 index fell 7.62% to 59,332.05, more than the Nifty 50, while the Nifty Smallcap 100 index fell 3.44% to 19,245.7. Information technology (IT) shares led the sector losses, as the table below shows. 

Price swings also grew sharper during the month. India VIX rose to 13.49 on 30 September from 11.19 on 31 August. 

How Did Gold, Silver and Copper Perform in September? 

Gold, silver and copper all fell in September. Silver fell the most, losing 9.19% to end the month at $60.407 an ounce, its lowest close of the month. Gold fell 6.38% to $4,157.80 an ounce, and copper slipped 0.52% to $6.559 a pound. 

How Did the IPO Market Perform in September? 

The market for new share sales stayed busy even as share prices fell. A total of 34 mainboard initial public offerings (IPOs) worth ₹39,380.82 crore opened for subscription in September. Another 52 small and medium enterprise (SME) IPOs worth ₹2,240.67 crore also opened, taking the month’s total to 86 IPOs worth ₹41,621.49 crore. 

Mainboard IPOs list on the main platforms of the National Stock Exchange of India (NSE) and BSE. SME IPOs list on separate exchange platforms for smaller companies, NSE Emerge and BSE SME. 

NSE’s own IPO accounted for ₹22,562.71 crore, or 57.29% of the mainboard total. The entire issue was an offer for sale (OFS), in which existing shareholders sell their shares and the company raises no new money. The issue was open from 17 to 21 September at a price band of ₹1,700 to ₹1,785 a share. Investors bid for 5.71x the shares on offer. Qualified institutional buyers (QIBs) bid for 12.68x the shares reserved for them, while retail investors bid for 1.39x. NSE shares listed on BSE on 24 September at ₹1,800, 0.84% above the issue price of ₹1,785. 

Six mainboard issues were worth ₹1,000 crore or more. 

Key Takeaways From September 

• The Nifty 50 fell 6.06% and the BSE Sensex fell 5.82%, their second monthly loss in a row. 

• Midcap shares fell more than the benchmarks, and IT shares led the sector losses. 

• Brent crude rose 8.33% as conflict in the Middle East continued, while gold, silver and copper fell. 

• FIIs were net sellers of ₹44,012.82 crore, while DIIs were net buyers of ₹76,030.29 crore. 

• The Fed raised rates, the US 10-year bond yield crossed 5% and the rupee weakened to 95.948 against the US dollar. 

• A total of 86 IPOs worth ₹41,621.49 crore opened for subscription, including NSE’s ₹22,562.71 crore issue. 

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