Indian stock market September 2022: What happened to Nifty this month?

Stock market this month: Nifty 50

The Indian stock market had a choppy month, despite the last day bounce on 30th September.
September has generally been a positive month for the stock market, with Nifty 50 posting losses just 7 times in the last 17 years. However, FII outflows due to a stronger dollar, interest rate hike fears and slowdown concerns led to a fall this time around.

Nifty Realty, Nifty Oil & Gas, Nifty Commodities, and Nifty IT were among the biggest losers, plunging up to 10.2% during the month.
Most of the sectoral indices posted losses during the month.

The Indian stock market started the month on a very good note, with robust GDP growth data, strong auto sales numbers and strong inflows by FII’s in the previous month lifted sentiments during the first week.
In the second week too, Nifty extended gains to reclaim the 18,000-mark. IT, banking stocks led the index to post one of the best weeks in five months.
However, worse than anticipated inflation and the consequent interest rate hike fears led to a huge selloff in the third week. International agencies such as Morgan Stanley said that the inflation would remain high over the next quarters, warranting a rate hike from RBI.
India's retail inflation came in at 7% in August, outside RBI’s upper tolerance band for the 8th time in a row.
In the week ended Sep 24th, the Nifty lost 1.2% with realty and bank stocks bleeding. Nifty posted losses for the second straight week, and most sectors fell after the Fed increased the interest rate by 75 basis points.
The rupee plunged to a new closing low of 81.04 against the US dollar. The strength of the American currency in the overseas market, a muted trend in domestic equities, a risk-off mood, and firm crude oil prices hurt the domestic currency.
In the final week, the Nifty remained highly volatile leading up to the last day of the month. The Nifty staged a massive comeback on the last day of the month to soar 1.64% after RBI’s rate hike of 0.5% came in-line with expectations.
For the month, the Nifty closed 3.7% lower.

Adani Group stocks: Adoni Group stocks were in the limelight during the month, after various global agencies raised concerns around the group's leverage. Check Adani Group Debt: Analysis.
Bajaj Finserv shares were in focus after its stock split this month. Check details
Tech stocks Infosys, Wipro and Tech Mahindra were in focus after Goldman Sachs raised concerns about recessions in the sector, and downgraded dome bluechip names. View analysis
Cement stocks saw a huge rally amid cooling raw material prices and expectations of better margins. Check details
Which are the upcoming IPOs in October? Check here

Here are some major factors that will drive the Indian markets in October:

Action by central banks: Nifty saw a welcome relief rally on the last day of September, after RBI's policy rate hike of 50 bps came in-line with estimates. The central bank’s observation that India's economy remains on strong footing despite global headwinds, boosted sentiments. However, the global environment remains volatile. Hence, any major action by global central banks could hurt the Indian stock market as well.
Sharp rise in dollar index: The sharp rise in dollar index has rekindled fears that foreign investors may pull out money more aggressively from emerging markets such as India. The rupee closed 35 poise higher at 81.35 on Friday.
Rising interest rates in the US, sinking rupee, and higher Brent crude combined weaken the case for consistent foreign inflows into India. This could lead to a correction in the near-term.
Analysts say that October could be another volatile month, with major triggers such as upcoming quarterly earnings, GDP growth, macro data, geopolitical issues and action from global central banks deciding the future course of the market. The upcoming festive season, and the consequent demand would also play a role in the direction of the index.

The markets are expected to remain volatile in the near-term.
Invest in equities in a staggered manner. Avoid lump sum investments.
Keep your SIP’s running. Stick to large caps and index stocks that are best suited to navigate the ongoing volatility.
In case of debt investments, invest only high-quality AAA-rated bonds as they have the least risk.
Given their lower sensitivity to interest rate changes, shorter duration funds are expected to outperform longer duration funds in the current scenario.

The stock market will remain closed on the following days in October-22.

What happened in the Indian stock market this month?
The Indian stock market turned choppy in September, with the Nifty 50 registering losses of 3.7%.
Which sectors gained and which lost in the Indian share market this month?
Nifty Realty, Nifty Oil & Gas, Nifty Commodities, Nifty IT were among the biggest losers, plunging up to 10.2%.
What drove the stock market during the month of September-22?
Inflation data, RBI’s rate hike, auto sales data, earnings and business updates from Indian companies dominated sentiments in September.
What is the outlook for October 2022?
Analysts say that September would be another volatile month, with major triggers such as inflation, GDP growth, macro data, geopolitical issues and action from global central banks deciding the future course of the market.