September Stock Market Sees Sharp Decline Led by IT and Metal Sector Weakness
The September stock market witnessed a steep fall on Tuesday, with both Sensex and Nifty closing deep in the red due to heavy selling in IT and metal counters. After a weak opening, the benchmark indices continued their downward trajectory, reflecting cautious investor sentiment ahead of the midweek holiday.
At the closing bell, the BSE Sensex dropped 519 points, or 0.6%, while the NSE Nifty slipped by 165 points, closing below the 25,600 mark. Market analysts attributed the decline to profit booking and weak global cues that weighed heavily on investor morale. The BSE MidCap index ended 0.2% lower, and the BSE SmallCap index closed down by 0.6%, indicating broad-based weakness across the market.
Among the top gainers for the day were Titan, Bajaj Finance, and Bharti Airtel, while Power Grid Corp, Tata Steel, and Bharat Electronics ranked among the biggest losers. The GIFT Nifty was also trading 265 points lower at 25,653, signaling continued pressure in the near term.
September Stock Market Highlights: Hero MotoCorp Drops, Power Grid Reports Profit Fall
All major sectoral indices, barring telecommunications, traded in the red, with heavy selling in the IT and metal sectors dragging the indices lower. Analysts observed that global uncertainty and muted demand outlook in export-driven sectors like IT and metals contributed to the selloff.
In the currency market, the Indian rupee weakened slightly to ₹88.7 against the US dollar. Gold prices on MCX were down 0.3% at ₹120,954 per 10 grams, while silver fell by 1% to ₹146,201 per kilogram, reflecting subdued sentiment in the commodities space.
September Stock Market Update Shows Renewed Selling Pressure
In corporate developments, Hero MotoCorp shares declined nearly 5% after the company reported a drop in total sales for October 2025. The two-wheeler giant announced that total sales fell 6.4% year-on-year to 6.35 lakh units. Domestic sales dipped 8% to 6.04 lakh units, while exports surged 42.8% to 30,979 units, reflecting a mixed performance. Despite the decline, the company maintained optimism for the coming months, citing strong product demand and growing confidence in the festive season.
Meanwhile, Power Grid Corporation of India Ltd. reported its Q2 FY26 results, posting a 1.76% rise in revenue from operations to ₹114.7 billion. However, higher expenses dragged profitability, with EBITDA falling 6% year-on-year to ₹91 billion and net profit declining 5.98% to ₹35.6 billion. The company attributed the dip to increased operational costs and reduced margins, as EBITDA margin fell from 86% to 79.4%.
September Stock Market Volatility Impacts Key Sectors and Major Companies
In the engineering sector, Dynamatic Technologies surged after being onboarded as an exclusive partner for India’s fifth-generation Advanced Medium Combat Aircraft (AMCA) program, led by Larsen & Toubro (L&T) and Bharat Electronics Ltd. (BEL). The collaboration aims to enhance indigenous aerospace manufacturing, marking a major milestone in India’s defense technology capabilities.
The trading day also saw continued investor interest in mid-cap opportunities. Market analysts highlighted that despite short-term volatility, select midcap stocks continue to show strong fundamentals and growth potential, especially in engineering, energy, and defense sectors.
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The Indian stock market will remain closed on 5 October 2025, in observance of Guru Nanak Jayanti, providing investors a short break amid market turbulence. Also Read: Q2 Results 2025: Adani Enterprises Profit Soars 83% While SBI, Suzlon, and Other Giants Post Mixed Earnings
Conclusion:
The September stock market session ended with sharp declines led by IT, metal, and power sector losses. While blue-chip companies like Hero MotoCorp and Power Grid reported mixed results, optimism persists in sectors linked to infrastructure and defense. Analysts expect market recovery to depend on global trends and domestic earnings momentum in the upcoming weeks.
