Market Ends Lower on F&O Expiry Day: Sensex Drops 500 Points, Nifty Falls Below 19,500

Market Ends Lower on F&O Expiry Day: Sensex Drops 500 Points, Nifty Falls Below 19,500

VoM News Desk | September 28, 2023 | 05:38 PM IST | Breaking News | Follow on Google News

Market Ends Lower on F&O Expiry Day: Sensex Drops 500 Points, Nifty Falls Below 19,500

Domestic equity benchmarks, Sensex and Nifty, witnessed a turbulent trading day on Thursday, September 28, ultimately closing lower by one percent. The market volatility was largely attributed to the monthly futures and options (F&O) expiry, combined with the influence of weak global cues. Notably, a significant sell-off in information technology (IT) stocks and the underperformance of heavyweight stocks, including Reliance Industries, ITC, and Infosys, contributed to the bearish sentiment.

Initial Positive Momentum Fades

The trading session began on a positive note, with the Nifty 50 opening with a modest gain of 0.1 percent, reaching 19,742 points, and the S&P BSE Sensex rising by 0.16 percent to 66,240 points. However, this initial optimism quickly dissipated due to the sell-off in IT and fast-moving consumer goods (FMCG) stocks.

Global Factors Weigh on Markets

Global factors, such as surging crude oil prices, rising US bond yields, and a stronger US dollar, exerted downward pressure on the market. These indicators have been causing concerns in global equity markets since the US Federal Reserve adopted a more hawkish stance earlier in the month.

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RBI’s Upcoming Meeting

Market participants also had their eyes on the upcoming meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), scheduled for October 4-6. Most analysts and economists anticipate that the RBI will maintain its current stance on interest rates, opting for a pause.

Market Closure

By the end of the trading session, the Nifty 50 had retreated significantly, closing at 19,523.55, down 0.98 percent or 192.90 points. The 30-share BSE Sensex also ended lower, shedding 0.78 percent or 517.54 points to close at 65,601.15.

Broader Market Indices

Broader market indices also experienced declines, with the S&P BSE Midcap falling by 1.19 percent to 31,923.84, and the BSE Smallcap losing 0.34 percent to settle at 37,347.57. Notably, the India VIX, a measure of market volatility, saw a sharp spike to 13 levels, a level last observed in May 2023, before settling at 12.8 levels.

VoM News Desk

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