Indian benchmarks trade in a narrow range after two days of losses as investors track crude oil, geopolitical tensions and foreign fund flows; Power Mech Projects jumps on ₹549 crore order
Indian equity markets traded with a cautious undertone on Wednesday, September 30, as the benchmark indices attempted to stabilise after two consecutive sessions of losses. The Sensex gained around 100–160 points in early trading, while the Nifty 50 hovered around the 22,700 mark as investors continued to assess elevated crude oil prices, geopolitical uncertainty and persistent foreign portfolio selling.
At around 10:00 AM, the Sensex was up 166.67 points, or 0.23 per cent, at 72,695.74, while the Nifty 50 was almost flat at 22,723.10. The market was characterised by narrow movements as traders remained cautious ahead of fresh global developments. Reuters also reported that Indian equities were struggling for direction after the previous two-day sell-off, with gains across several sectors offset by continued foreign selling and elevated oil prices.
Nifty attempts to defend the 22,700 zone
The Nifty 50 opened below the 22,700 mark, falling about 45 points to 22,671 in the initial trade before recovering towards the 22,700 level.
The index had closed at 22,716.20 on Tuesday, down 64.05 points, or 0.28 per cent, while the Sensex declined 242.65 points, or 0.33 per cent, to 72,529.07. Both benchmarks had already suffered a sharp fall on Monday, making the current session important for determining whether the market can establish short-term stability.
The 22,650–22,700 region is therefore emerging as an important near-term zone for the Nifty. Reuters reported that market participants were watching the 22,650 area as a potential support zone following the recent sell-off.
IT and PSU banks provide support
Sectoral performance remained mixed during the morning session. IT, PSU banks, chemicals and oil-and-gas stocks were among the relatively stronger pockets, helping limit downside in the headline indices.
The Nifty PSU Bank index gained around 1 per cent in early trade, emerging as one of the strongest sectoral performers. The move comes after a period of significant volatility across financial stocks.
IT stocks also attracted buying interest after the technology sector had witnessed substantial selling pressure in September. Investors are closely monitoring IT companies amid concerns surrounding global technology spending, currency movements and the potential impact of artificial intelligence-led automation.
Healthcare stocks, meanwhile, remained under pressure, with Dr Reddy's Laboratories and Max Healthcare among the notable Nifty losers in early trade.
TCS leads early Sensex gainers
Tata Consultancy Services emerged as one of the strongest performers within the Sensex pack during opening trade, gaining around 2.5 per cent according to early market reports.
The move provided support to the benchmark at a time when several heavyweight stocks were under pressure.
The performance of large-cap IT stocks will remain important for the broader market because of their substantial index weight and sensitivity to global technology spending, the US dollar and overseas economic conditions.
Broader markets remain volatile
The broader market also displayed signs of selective buying in early trade. The Nifty MidCap 100 and Nifty SmallCap 100 initially gained around 0.50 per cent and 0.66 per cent, respectively, although subsequent market movements remained volatile.
Reuters reported that mid- and small-cap indices were up around 0.7 per cent in the broader session, with 12 of 16 major sectors advancing.
The recent volatility nevertheless highlights the need to distinguish between a broad market recovery and individual stock-specific moves. Foreign selling and elevated global yields continue to act as important headwinds.
Power Mech Projects gains on ₹549 crore order
Power Mech Projects was among the major stocks in focus on Wednesday after the company secured an order worth ₹549.37 crore.
The contract involves complete operation and maintenance services for the 2x600 MW Tuticorin Thermal Power Plant of Moxie Power Generation, an Adani Group company. The contract is scheduled to run for 60 months from October 1, 2026, to September 30, 2031.
Following the announcement, Power Mech Projects shares gained sharply in early trade, rising around 5.7 per cent to approximately ₹2,535 on the NSE.
The order strengthens the company's order-book visibility in the power infrastructure and operations-and-maintenance segment and places the stock among the key counters being monitored by traders.
NLC India gains after 1,080 MW power JV
NLC India also attracted investor attention after announcing a 50:50 joint venture with National Aluminium Company to develop a 1,080 MW captive thermal power plant.
The proposed project is planned in Angul, Odisha, with both companies holding equal participation in the venture.
NLC India shares gained around 2.3 per cent in early trade, reaching approximately ₹261.60 on the NSE.
The development is significant for both companies because it links power generation requirements with the broader industrial ecosystem in Odisha.
Crude oil remains the biggest macro trigger
Crude oil continues to be one of the most important variables for Indian equities.
Brent crude was trading around $103–104 a barrel on Wednesday, with prices remaining elevated amid uncertainty surrounding US-Iran developments. Reuters reported Brent rising about 1 per cent to around $103.5 a barrel after the US rejected an easing of sanctions on Iran.
For India, sustained high crude prices can increase the country's import bill and put pressure on inflation, the current-account balance and corporate margins.
Energy-intensive industries, transportation companies and businesses dependent on imported raw materials can be particularly sensitive to prolonged increases in oil prices.
Foreign selling remains a major concern
Foreign investor flows continue to weigh on market sentiment.
Reuters reported that foreign investors sold Indian equities worth approximately ₹9,980 crore on Tuesday alone. Monthly foreign outflows were estimated at around $2.7 billion, while year-to-date selling had reached roughly $26.75 billion.
At the same time, domestic institutional investors have provided some counter-support. Financial Express reported that FIIs sold equities worth ₹9,980.22 crore, while DIIs bought shares worth ₹6,952.71 crore.
The divergence between foreign selling and domestic institutional buying is likely to remain an important factor for market breadth and index stability.
US bond yields and rupee add to market pressure
Global bond yields are another factor investors are watching closely. The US 10-year Treasury yield remained elevated above 5 per cent, reducing the relative attractiveness of emerging-market equities.
The Indian rupee has also remained under pressure, trading close to the ₹96-per-dollar zone. A weaker rupee can increase the domestic cost of imported commodities, particularly crude oil, although it can provide some support to export-oriented sectors such as IT.
The combination of high oil prices, elevated US yields and currency weakness therefore creates a complicated backdrop for Indian equities.
September sell-off puts 2026 performance under scrutiny
The September correction comes after a difficult period for Indian equities.
The Nifty 50 closed at 22,716.20 on Tuesday, while the Sensex ended at 72,529.07. Both indices have experienced sustained pressure during the year, with foreign outflows and global macroeconomic uncertainty weighing on investor sentiment.
Reuters reported that the Indian market was heading towards a particularly weak nine-month performance period, while the rupee's depreciation has further amplified the decline for overseas investors.
This makes the final trading sessions of the quarter important for assessing whether the current weakness is developing into a deeper trend or whether the market can form a base around current levels.
Stocks to watch today
Apart from Power Mech Projects and NLC India, several companies are in focus because of corporate developments.
Moneycontrol identified stocks including Avalon Technologies, Ganesh Benzoplast, KSB, ArisInfra Solutions, Axiscades Technologies, Honasa Consumer, GSPL Transmission, Elevate Campuses and Adroit Industries among counters to watch on September 30.
KSB, for instance, has received an export order worth up to ₹118 crore for supplying a boiler feed pump package, while Ganesh Benzoplast has entered into agreements to sell its liquid-storage tank and railway-network businesses for ₹1,154 crore.
Such company-specific developments could lead to significant divergence between individual stocks and the broader indices.
Market Outlook
The Indian market is attempting to stabilise after a sharp two-session decline, but the overall environment remains sensitive to external triggers.
For the Nifty 50, the 22,650–22,700 region is likely to remain an important near-term reference zone, while sustained buying would need to overcome resistance created by the recent breakdown from higher levels. The immediate market direction is likely to remain closely linked to crude oil prices, US-Iran developments, foreign fund flows, the rupee and global bond yields.
Sector rotation is already visible, with PSU banks, IT and selected infrastructure counters showing relative strength while healthcare and some other defensive pockets remain under pressure.
For investors and traders, the current market therefore remains one where index-level volatility can coexist with strong stock-specific opportunities. Corporate order wins, earnings visibility and balance-sheet developments are likely to continue driving individual counters even as macroeconomic uncertainty keeps the broader indices volatile.