Nifty Heads Into September's Last Session Down 5.7% as BSE Prepares to Replace Wipro

With a single trading session left in September, the scorecard for Indian equities this month is already one of the weakest in years. The Nifty 50 closed Tuesday at 22,716.20, down 64.05 points or 0.28 percent. It had ended August at 24,080.40, which puts the month-to-date decline at roughly 5.7 percent.

The Sensex finished 242.65 points, or 0.33 percent, lower at 72,529.07. Both closing losses were far smaller than the damage seen during the morning, when the Nifty briefly slipped toward 22,570 and the rupee crossed 96 per dollar, as covered in our earlier report on the morning sell-off. Buying in pharma and metal counters helped the benchmarks claw back most of that fall by the close.

How This September Compares

A 5.7 percent drop is significant, but it is not yet a record-breaking September. The Nifty lost about 6.4 percent in September 2020, during the pandemic-era volatility, and roughly 16 percent in September 2001. Whether this month ends up closer to 2020's figure depends heavily on Wednesday's session.

The weekly picture is starker. The Nifty has now declined for seven consecutive weeks, the longest such run since the Covid-19 crash of 2020. Broader indices have taken a heavier beating: the Nifty Midcap 150 is down more than 7 percent this month, and on Tuesday alone the Midcap 100 fell about 1 percent while the Smallcap 100 lost around 0.8 percent. Thirteen of 16 major sectoral indices ended in the red.

The Index Reshuffle Taking Effect Wednesday

One stock bucked the mood in the final hour. BSE Ltd, the exchange operator, gained ahead of its entry into the Nifty 50, where it replaces Wipro from September 30. BSE had risen as much as 3 percent intraday to about Rs 3,191, while Wipro slipped close to 2 percent and ended the day lower.

The swap reflects how differently the two stocks have travelled this year. BSE is up more than 21 percent in 2026, helped by rising trading volumes, while Wipro has lost over 40 percent as IT services companies struggle with weak demand and uncertainty around artificial intelligence. The Nifty 50 is rebuilt twice a year based on six-month average free-float market capitalisation, and BSE's figure had overtaken Wipro's.

Index changes force passive funds and ETFs that track the Nifty 50 to buy incoming stocks and sell outgoing ones. Market estimates put potential passive inflows into BSE at around $595 million and outflows from Wipro at about $152 million, which explains the late-session moves in both counters.

What Is Still Weighing on the Market

The pressures behind this month's slide remain in place. Brent crude is trading around $105 to $106 a barrel amid continuing tension in West Asia, and US 10-year Treasury yields are above 5.27 percent. India's own 10-year bond yield touched 7.19 percent during the day, its highest level since April 2024.

Foreign investors have been steady sellers. Overseas funds have pulled more than $2.17 billion out of Indian equities so far in September, according to Reuters. IT and insurance stocks remained weak on Tuesday, with PB Fintech continuing to slide after recent concerns over proposed caps on insurance commissions. Most Tata Group stocks also closed lower.

For readers tracking broader themes rather than daily moves, the latest Market Pulse issue covers the macro backdrop in more depth. For Wednesday, the key variables are unchanged: crude prices, the rupee near 96, US yields and whether foreign selling eases once quarter-end rebalancing is complete.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.