On October 1, 2026, the Indian stock market experienced notable declines as the SENSEX and NIFTY50 indices tumbled over 1% during noon trading. Key stocks such as MTNL, Kotak Bank, and Sterlite Technologies stood out for their significant movements amid a challenging market environment.
- The SENSEX fell by up to 1.3%, reaching an intraday low of 71,527.98.
- The NIFTY50 dropped as much as 1.4%, hitting 22,301.30 during the session.
- Shares of MTNL surged 17.3% following approval to sell property to the Income Tax Department.
- Kotak Mahindra Bank shares rose 4.5% after RBI approved a new MD & CEO appointment.
- Sterlite Technologies gained 5% on a $1.2 billion long-term supply agreement.
- Molbio Diagnostics shares jumped 19.5% after HDFC Mutual Fund acquired a 2% stake.
Why did the SENSEX and NIFTY50 indices fall on October 1, 2026?
The decline in the SENSEX and NIFTY50 was mainly due to weak global market cues, a weakening Indian rupee, and continued foreign fund outflows. On the previous day, foreign institutional investors sold shares worth ₹10,148.41 crore, which negatively impacted investor sentiment. Additionally, the volatility index India VIX surged 15% to 15.49, indicating increased market uncertainty.
Which sectors and stocks were most affected during the trading session?
Auto stocks such as Bajaj Auto, Mahindra & Mahindra, Eicher Motors, and Maruti Suzuki India fell sharply, dragging down the Nifty Auto index by over 4%. This drop was influenced by subdued vehicle sales data for September 2026 and high Brent crude oil prices around $98 per barrel. FMCG companies including ITC, Hindustan Unilever, Godrej Consumer Products, Dabur, and Tata Consumer Products also faced selling pressure due to concerns about weak consumption growth, rising input costs, and margin pressures amid inflation.
What caused the rise in shares of MTNL and Kotak Mahindra Bank?
MTNL shares rose 17.3% after the company’s board approved selling its Powai property to the Income Tax Department for ₹891.53 crore through a government-to-government transfer, pending formal acceptance and approvals. Kotak Mahindra Bank shares increased by 4.5% following the Reserve Bank of India's approval of Anup Kumar Saha as the new Managing Director and CEO, effective January 1, 2027. Saha currently serves as an Executive Director and oversees key functions such as Retail Banking and Data Analytics.
How did Molbio Diagnostics and Sterlite Technologies perform?
Molbio Diagnostics shares surged 19.5% to an intraday high of ₹1,564.30 after HDFC Mutual Fund purchased 23 lakh shares, representing a 2% stake in the company. This acquisition was valued at approximately ₹302.45 crore. Meanwhile, Sterlite Technologies shares climbed 5% following the announcement of a $1.2 billion long-term supply agreement with a hyperscale partner. This contract, valid until December 2030, involves supplying optical connectivity products as per customer specifications.
What other notable market debuts occurred on October 1, 2026?
A-One Steel debuted on the National Stock Exchange at ₹455 per share, a 12.35% premium over its IPO price of ₹405. On the Bombay Stock Exchange, it listed at ₹462, up 14.07%. The ₹405 crore IPO included a fresh issue and an offer-for-sale by promoters. Additionally, digital lending platform Moneyview made a strong stock market debut, opening at ₹55 on the NSE, a 61.76% premium over its ₹34 IPO price, and at ₹55.61 on the BSE, up 63.56%. The IPO was highly subscribed, with investors applying for over 98 times the shares offered.
What government initiatives influenced the power sector stocks?
Shares of power and allied companies such as Power Grid Corporation of India, Adani Energy Solutions, GE Vernova T&D India, Hitachi Energy India, and CG Power and Industrial Solutions gained following the Union Cabinet's approval of the ₹1.86 lakh crore PM-DHARA Scheme. This initiative aims to strengthen intra-state transmission systems and deploy 50 GWh of battery storage to facilitate evacuation of 135 GW of renewable energy, supporting India's renewable energy expansion goals.
