Sensex Closes 264 Points Lower, Nifty Dips Below 26,200: Power Grid Drops 3%, Airtel Slips 2%

After a relatively calm start, the Indian equity markets shifted gears as the day progressed, with both BSE Sensex and NSE Nifty50 closing lower in the last trading session of the week. Despite touching fresh all-time highs earlier, the indices saw a pullback, erasing their gains and ending the day in negative territory.

By the closing bell, the BSE Sensex had dropped 264 points, marking a 0.3% decline. Meanwhile, the NSE Nifty50 closed down by 41 points, reflecting a 0.2% decrease. The downward movement in the markets was largely influenced by declines in major stocks such as Bharti Airtel, HDFC Bank, and ICICI Bank, which were among the top losers for the day. In contrast, companies like BPCL, Cipla, and Sun Pharma managed to buck the trend and ended as the session's top gainers.

At the time of writing, the GIFT Nifty showed a modest uptick, trading at 26,384, up 34 points. For a deeper understanding of the broader financial market players, a review of the Fin Nifty Companies could provide more context on key stocks in the financial sector. Likewise, for insights into the banking sector’s performance, a look at Bank Nifty Companies offers a comprehensive overview.

Market Indices and Sectoral Performance

The broader market indices saw mixed outcomes, with the BSE MidCap index ending 0.3% higher, and the BSE SmallCap index remaining flat. In terms of sectoral performance, sectors like metals and oil & gas exhibited strength, attracting buying interest. However, stocks in the real estate and telecom sectors experienced notable selling pressure, pulling down overall market sentiment.

A few companies stood out by reaching their 52-week highs, including Bosch, Coforge, and Britannia, underscoring strong individual performances even amid broader market declines. For those interested in tracking these major movers, the stocks to watch today section provides real-time updates and key information on companies driving market trends.

Currency and Commodity Markets

In the currency market, the Indian rupee was trading at 83.7 against the US dollar. Meanwhile, on the commodity front, gold prices for the most recent contracts on the MCX were trading 0.2% lower at ₹76,135 per 10 grams. Silver, on the other hand, saw a steeper decline, with prices trading 0.6% lower at ₹92,079 per kilogram.

SJVN Shares Rise on Major Project Announcements

In corporate news, shares of SJVN Limited surged by as much as 3.5% during the day on September 27, driven by positive developments in the power sector. The company signed two significant memorandums of understanding (MoUs) with the Government of Maharashtra, propelling its stock upward.

The first MoU involves the development of five Pumped Storage Projects (PSPs) in collaboration with Maharashtra’s Department of Water Resources. These projects, which have a combined capacity of 8,100 MW, include developments at Kolmondapada (800 MW), Sidgarh (1,500 MW), Chornai (2,000 MW), Baitarni (1,800 MW), and Jalvara (2,000 MW). These initiatives aim to enhance energy storage, stabilize the grid, and meet peak electricity demand with clean energy solutions.

The second MoU was signed with the Maharashtra State Power Generation Company (MAHAGENCO) for the development of a 505 MW Floating Solar Project at the Lower Wardha Dam. This project will be executed in two phases: the first covering 100 MW and the second accounting for the remaining 405 MW. Both projects are aligned with the policies of the Central and State Governments, and SJVN is responsible for conducting surveys, investigations, and detailed project reports to ensure timely development.

Reliance Power Hits Upper Circuit Amid Strong Momentum

Shares of Reliance Power continued their upward momentum, hitting the 5% upper circuit for the eighth consecutive session on September 27. This comes amid relatively flat movement in the broader benchmark indices.

The stock's rally began on September 9 and has been fueled by several key developments. On September 16, the stock surged after the company secured a significant 500 MW/1000 MWh Battery Energy Storage Contract from the Solar Energy Corporation of India (SECI), positioning Reliance Power as a major player in one of the world’s largest standalone battery storage projects.

Further optimism was sparked on September 18 when the company announced it had resolved outstanding debt issues related to its subsidiary, Vidarbha Industries Power Limited (VIPL). Reliance Power reached a settlement with CFM Asset Reconstruction Private Limited (CFM), releasing the company from corporate guarantees amounting to ₹38.7 billion. This development boosted market sentiment, leading to another upper circuit on that day.

The momentum continued into September 19, when Reliance Power shares climbed 5% once again after the company revealed its board would meet on September 23 to discuss the raising of long-term resources from both domestic and global markets.

BPCL Shares Hit Record High on Strong Trading Volumes

In the energy sector, Bharat Petroleum Corporation Limited (BPCL) saw its shares surge nearly 7%, reaching a record high of ₹370.5. This rise was driven by significant trading volumes, with over 30 million shares changing hands on the BSE and NSE, compared to the one-month average of 10 million shares.

The rally In BPCL shares follows recent announcements that its subsidiary, along with Indian Oil Corporation (IOC), was awarded a production concession by Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA). This concession builds on the earlier exploration and production agreement awarded to Urja Bharat Pte Limited (UBPL) in March 2019, marking the successful completion of the exploration phase. UBPL, a 50:50 joint venture between BPCL and IOC, continues to strengthen its position in international energy markets.

In conclusion The Indian equity market faced a downturn as benchmark indices Sensex and Nifty50 closed lower, weighed down by losses in key sectors such as real estate and telecom. However, some sectors, like metals and energy, demonstrated resilience, with companies such as BPCL and SJVN making headlines due to significant project developments. Meanwhile, Reliance Power continued its upward trajectory, hitting the 5% upper circuit for the eighth consecutive session, fueled by positive corporate news. The rupee traded weak against the dollar, while precious metals like gold and silver saw declines in the commodity market.