Markets sank but IPOs sailed: NIFTY IPO index rose 1% as NIFTY50 fell 6% in September

Indian equity markets logged their weakest performance since March 2026 as they dropped over 6% in September. The NIFTY50 dropped over 6.1% or 1,472 points, and the SENSEX fell 4,476 points or 5.8%. The fall wiped out more than ₹16 lakh crore in market capitalization of the total Indian equity markets, the worst since March 2026 this year. The market breadth also favoured the declines as NIFTY50 4 stocks out of the 50 index constituents closed in green, while 46 other stocks closed in the red.

At the sector-specific level, all the sectors closed in red, with NIFTY IT shedding over 11%, the worst fall after February 2026 this year. All the sector constituents were losers, with LTM Ltd (-13.5%), Coforge (-13.2%), Infosys (-13.1%), Oracle Financial Services (-12.8%), and Tata Consultancy Services (-12.4%) among the top losers. Wipro shares were particularly in focus this month, as it got replaced from the NIFTY50 after a more than decade-long run. The shares closed 12% lower this month. The sectoral headwinds continued to sour investor sentiment

This was followed by NIFTY consumer durables, which fell nearly 9% in September, driven by a sharp selloff in consumer durable stocks like Havells India (-15.2%), PG Electroplast (-14%), Amber Enterprises (-11.6%), Voltas (-11.4%), and Crompton Greaves Electrical (-9.7%). The consumer electronics durable goods makers were the worst hit, as commodity inflation is expected to affect earnings growth in the coming months. Copper prices hit record-high levels in September, surging over 20% in 2026.

Besides these two top losers, NIFTY Auto (-10%), NIFTY Oil & Gas (-5%), FMCG (-5%), Financial Services (-4.8%), and Defence (-4.8%) were other key sectoral losers for September. NIFTY Mobility (-7%), NIFTY India Consumption (-6.9%), NIFTY Rural (-7.2%), and NIFTY Core Housing (-7.5%) were some of the top thematic losers for the month.

Markets tanked but IPOs shine

However, the IPO index maintained its charm and closed with over 1.2% gains for the month. Investor sentiment remained upbeat for new IPOs, with robust listing and post-listing gains. Investor participation also remained strong as the majority of the IPOs witnessed robust oversubscription. Nearly 33 mainboard IPOs got listed on the bourses in September, and 24 out of them listed with gains and 9 others at a discount to their issue price. Similarly, 37 SME IPOs got listed in September, with the majority of them listing with gains.

NIFTY IPO index, which currently holds 149 stocks, which are recently listed IPOs until they complete two years of listing. Amidst the gloomy atmosphere, 53 of these 149 stocks gained in September, highlighting investors’ optimism around recently listed companies. Similarly, the index is trading with over 16% gains in 2026 vs. -13% returns of NIFTY50 in the same period, further highlighting the trend.

The trend is not just visible for September, but stands as a continuation of the broader trend this year. Out of 194 IPOs listed this year, 129 IPOs gained on the listing day, and 123 IPOs currently stand with gains against the issue price.

Bottomline

With constant flow of negative news around the broader market, the sentiment remains sour for broader market stocks. On the other hand, handful of IPOs like ESDS Solutions, Hero Motors, SS Retail, delivering euphoric gains in less than a month's period, is likely to keep investor attraction towards IPOs.