The Reversed September Effect 2021

Reversed September Effect

September has spooked investors as it has always been known to be the worst month for the stock markets and is termed the “September Effect”. But, as we all are aware that the world had already turned upside down post-pandemic, the emotional  September reversed its effects this time. 

For your information, the September effect refers to a month of weak stock market returns. September is the month with a negative return over the last 100 years.  

It’s as unpredictable as, after 50K, Sensex climbed an all-new high of 60K in the last week of September. It seems like the markets are also catching on to the IPL craze as it was Sensex’s fastest ever 10K drift. 

September performance of Sectorial Indices 

Index Change
Nifty Realty 38.10%
Nifty Mid-cap 50 12.28%
Nifty Auto 9.72%
Nifty Small-cap 50 8.21%
Sensex 8.06%
Nifty Financial Services 7.46%
Nifty 50 7.36%
Nifty Bank 7.23%
Nifty FMCG 5.91%
Nifty IT 5.68%

The realty stocks aroused because of higher expected property registrations in the month and the stamp duty cut in Karnataka. Major home loan lenders offered  declined interest rates on home loans. Investors welcomed this development and are pushing the index higher. 

India’s economy came to shape in all quarters even as a devastating second wave of  COVID-19 scrubbed the country in April, with growth driven by a mount in manufacturing and increased consumer spending.