The Indian equity markets witnessed significant volatility in September, driven by factors such as surging crude oil prices, FPI outflows, spiking dollar index, and global macroeconomic challenges. However, robust buying by domestic investors has supported Indian benchmark indices - Nifty 50 and Sensex to finish the month with gains of 2% and 1.54%, respectively.
Impressively, the small-cap stocks maintained their rally, with 70% of Nifty Small cap 100 stocks closing the month in positive territory. The Nifty Small cap 100 index hit a record high of 13,079 on September 12, and it finished the month with a gain of 6.05%, up 47% from March 2023 lows.
Within the Nifty 100 stocks, PSU banking shares took the lead, with Indian Overseas Bank leading the pack with an impressive rally of 51.3%. During this period, the stock has gained to ₹46.75 from ₹30.90. This stellar surge translates into a remarkable gain of 143% over the last year.
Central Bank of India shares also saw a significant uptick, soaring by 46.2% and hitting a fresh 52-week high at ₹56. Over the last year, the shares surged from ₹19.75 to ₹51.30, a substantial 160% increase.
IDBI Bank experienced a robust spike, rallying by approximately 20% and reaching a new 52-week high of ₹74.8 on September 18. Likewise, Karur Vysya Bank, a private sector bank reached a new 52-week high of ₹139.50 on September 19, concluding the month with a 10.6% gain.
Cochin Shipyard shares climbed 28.4% in September, breaching the ₹1,000 mark for the first time on September 07 and hitting an all-time high of ₹1,258 in the subsequent trading session.
Praj Industries, a key player in the bioenergy sector, achieved a historic high of ₹609.80 per share in September, ending the month with a nearly 22% gain.
According to domestic brokerage firm Systematix Institutional Equities, the company is well-positioned to benefit from India's Ethanol Blending Program (EBP), as the country aims to achieve a 20% blending rate by 2025–26 from 10% currently.
Multi Commodity Exchange of India saw its shares rise by 27.5% in September, with the majority of the gains occurring in the final two trading sessions after announcing the launch of its new web-based commodity derivatives platform. However, the proposed launch was put on hold by the country's market regulator, SEBI.
NBCC (India), a state-owned construction firm, experienced a 14.5% surge in its shares last month, driven by robust order wins. On September 22, the company secured a work order worth ₹100 crore for various development projects at the township and mines of SAIL Bhilai Steel Plant.
Additionally, NBCC signed an MoU with the Kerala State Housing Board to develop a 17.9-acre land parcel at Marine Drive, Kochi, Kerala, with an estimated order size of approximately ₹2,000 crore.
In the same period, several other stocks, including BSE, HUDCO, CDSL, Shree Renuka sugars, SJVN, Granules India, Glenmark Pharmaceuticals, Tata Teleservices (Maharashtra), Balrampur Chini Mills, Triveni Turbine, IRB Infrastructure Developers, and Deepak Fertilisers & Petrochemicals , recorded gains ranging between 10% and 40%.
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