Sensex and Nifty Are Back at 2024 Levels: What Went Wrong and What SIP Investors Should Do
Indian markets have fallen back to 2024 levels. The Nifty 50 is now at about 22,422 and the Sensex at about 71,910, its lowest close since March after four straight losing sessions. These are levels last seen in early 2024: on 1 January 2024 the Sensex touched about 72,500 and the Nifty about 21,800. From the record highs of late 2025 (about 86,000 on the Sensex and 26,300 on the Nifty), the indices are down roughly 16% and 15%. This article explains what is behind the decline and what it means for mutual fund investors.
The Nifty 50 at a glance
Date | Nifty 50 close | Where the Nifty is today vs. that level |
End of 2023 | 21,731 | 3.2% higher |
End of 2024 | 23,645 | 5.2% lower |
End of 2025 | 26,130 | 14.2% lower |
Latest close | 22,422 | - |
Index levels are price-only and exclude dividends. Year-end closes: Forbes India; latest close: Stockpil.
Why the market has fallen
Several pressures have built up at the same time:
• West Asia crisis and crude oil. Investors remain worried about the prolonged West Asia crisis and elevated crude prices. India imports most of its oil, so costlier crude can lift inflation and weigh on the rupee and company costs.
• Higher US bond yields. The US 10-year yield is at a multi-year high. When safer returns rise abroad, global funds often move money out of emerging markets such as India.
• Foreign investor selling. Persistent selling by foreign investors has been a steady drag. Reports say net foreign selling of about ₹9,484 crore in the latest session alone.
• Rate-hike expectations. Retail inflation was 4.82% in August. Eight of ten economists in a Business Standard poll expect the RBI to raise the repo rate by 25 basis points to 5.50% on 7 October. That would be its first increase since February 2023. The US, UK and Japan have already raised rates.
How the fall has unfolded
The Nifty 50 fell 6.1% in September, and the weakness carried into October. In the latest session, autos (down 3.5%), metals (down 2.4%) and FMCG (down 1.6%) were among the weaker sectors, while IT rose 2.2%.
The fall has not been even across the market. Over one year, the Nifty 50 is down 9.7%, with IT down 16.5% and FMCG down 20.5%. Yet the Nifty Midcap 100 is up 3.0%, the Smallcap 100 is up 7.3%, and pharma and metals are up 21% and 23%. Company earnings have also changed since 2024, so the same index level does not mean the same valuation.
The domestic cushion: SIP money
Domestic investors have kept investing. Monthly SIP contributions rose from ₹18,838 crore in January 2024 to ₹31,961 crore in July 2026, an increase of nearly 70%. August 2026 set a new record at ₹32,297 crore. Mutual fund assets under management reached a record ₹85.76 lakh crore at the end of July. Market commentary credits this steady SIP flow with softening the impact of foreign selling.
Is this a good time to buy the dip?
When markets fall, many investors ask whether it is time to buy at lower prices. The idea is simple: the same amount of money buys more units when prices are lower. But no one can say where the bottom is. The Sensex has lost ground for several sessions in a row, the RBI decision is due on 7 October, and crude oil and US yields remain high, so prices could fall further before they recover.
The long-term record is encouraging but not a promise. The Nifty 50 rose from 21,731 at the end of 2023 to 26,130 at the end of 2025, yet it has since given back most of that gain. Past recoveries do not guarantee future ones. If you want to invest more during a fall, these approaches are generally more careful than putting everything in at once:
• Keep your SIPs and consider a top-up. Raising your monthly SIP amount, if your budget allows, adds more units at lower prices without needing to pick a day.
• Stagger a lump sum. A Systematic Transfer Plan (STP) moves money in instalments from a liquid or short-duration debt fund into an equity fund over several months. This spreads your entry across different prices.
• Use only money you will not need soon. Keep an emergency fund and money for near-term goals separate, and avoid borrowing to invest.
• Stay within your asset allocation. Any extra equity investment should still fit your risk comfort and time horizon. A hybrid fund can be a gentler way to add equity exposure.
What this means for you
• Keep SIPs going if your goal is long-term. A SIP buys more units when prices are lower, which can reduce the average cost over time. This works best in falling markets.
• Match money to the time horizon. Money needed within about three years usually does not belong in equity funds. Goals five years or more away have more time to ride out swings.
• Review asset allocation instead of reacting. Hybrid and multi-asset funds spread money across equity, debt and other assets and can smooth the ride for investors who find volatility hard to handle.
• Know how rate rises affect debt funds. When interest rates rise, bond prices tend to fall. Funds holding longer-maturity bonds can see larger NAV movements than those holding shorter-maturity papers.
• Speak to your mutual fund distributor before changing a plan. Each investor's goals, risk comfort and timeline are different.
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully. Past performance may or may not be sustained in the future. This article is for general information and education only and is not investment advice or a recommendation to buy or sell any security. Market data is as of the latest close at the time of writing and may change.
Sources
1. Whalesbook, "Sensex, Nifty Fall on October 1 as FII Selling Weighs", October 2026.
2. Stockpil, "Nifty 50 Falls 0.9% to 22,422 as Bajaj Auto Drags: India Markets Today".
3. Trading Economics, BSE Sensex index page (latest close).
4. Business Standard, "RBI MPC meet from Oct 5-7: Will RBI hike the repo rate this time?" and Business Standard poll, 2 October 2026.
5. Whalesbook, "RBI Policy Meeting Begins Oct 5: Rate Hike Expectations Explained", 2 October 2026.
6. Upstox, "SENSEX crosses 86K mark for 1st time, NIFTY50 hits all-time high", 2025.
7. Business Standard, "Benchmarks see wild swings on first day of 2024", 1 January 2024.
8. Forbes India, "Nifty 50 History: Index movement and PE ratio from 1990 to 2026".
9. INDmoney, "How Indian Mutual Funds Became the Market's Shock Absorber During FII Selling" (AMFI data).
10. VRID, AMFI SIP Data and Monthly Mutual Fund Inflows Tracker (August 2026 AMFI data).
11. PW, "SIP Inflows Hit 4-Month High in July 2026" (AMFI data, released 11 August 2026).
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