Tech Shines Amid Broader Caution
Nifty IT surged 3.18% to 31,281.7, with TCS, HCL Technologies and Tech Mahindra leading gains after Nvidia's AI optimism and Salesforce's blockbuster earnings — Agentforce ARR jumped 240% — reassured investors that enterprise AI spending remains robust. This stood in sharp contrast to the broader market, where Nifty 50 slipped 0.13% to 24,175.65 and Sensex fell 0.27% to 77,264.51, weighed down by Bank Nifty's 0.50% decline to 57,496.3. The divergence highlights how sector-specific catalysts are currently overriding index-level sentiment.
Jio Platforms IPO Clears SEBI Hurdle
Jio Platforms has received SEBI approval for what could become India's largest-ever IPO, with reports citing figures between ₹35,000 crore and ₹37,700 crore and a potential valuation near ₹9.5 trillion. Roughly ₹27,500 crore of proceeds are earmarked for repaying Reliance Jio Infocomm's borrowings, per Economic Times, while shareholder quota details and the record date remain pending. SEBI also cleared six other IPOs on the same day, including Paras Healthcare and Bharat PET, signalling a busy primary market pipeline ahead.
FIIs Sell, DIIs Absorb the Pressure
Foreign institutional investors intensified selling to ₹5,040 crore, a sharp jump from ₹298 crore the previous session, according to CNBC-TV18, even as domestic institutional investors countered with ₹5,184 crore of buying. This tug-of-war between foreign outflows and domestic support has been a recurring feature of recent sessions and appears linked to Fed Chair Kevin Warsh's hawkish signals, which have strengthened the dollar and pressured emerging-market flows more broadly.
Warsh's Jackson Hole Message Shakes Wall Street
Fed Chair Kevin Warsh told the Jackson Hole symposium that inflation remains 'elevated' and 'concerning,' explicitly signalling that rate hikes may be needed — a more hawkish tone than markets had priced in. US stocks ended lower in response, with the Dow down 0.02% to 53,559.99, S&P 500 off 0.25% to 7,711.76, and Nasdaq down 0.52% to 26,402.42, while the dollar jumped and is set for a weekly gain. This shift in Fed expectations toward tightening rather than easing is a meaningful cue for how global capital allocates toward emerging markets like India in coming weeks.
Forex Reserves Hit Record High
India's foreign exchange reserves climbed to an all-time high of $729.33 billion, up $12.4 billion in a single week, according to RBI data cited by Economic Times, with foreign currency assets rising $9.4 billion to $591 billion and gold reserves up $2.8 billion to $114 billion. The RBI's special FCNR-B swap facility has drawn $65.4 billion in deposits, with total inflows through the window reaching $72.85 billion. This reserve buffer arrives at a useful moment given the dollar's strength following Warsh's comments, offering the RBI more room to manage currency volatility.
Block Deals Reshape Ownership Across Sectors
Hero MotoCorp acquired a 1.18-crore-share stake in Ather Energy for ₹1,758 crore from the Government of Singapore, lifting its holding to roughly 32.8% and sending Ather shares up nearly 10%, per Livemint. Separately, Lenskart saw a ₹1,857 crore block deal as Alpha Wave Ventures exited nearly 2.95 crore shares at ₹630 apiece, picked up by Goldman Sachs, Morgan Stanley, ICICI Prudential and SBI Mutual Fund, even as the stock has gained over 45% year-to-date. Blackstone has also launched an OFS to sell up to 25% of Knowledge Realty Trust, worth over ₹11,988 crore, at a floor price of ₹108 per unit.
Industrial Output Signals Underlying Momentum
India's industrial output grew 6.7% in July, with manufacturing up 7.3% and electricity generation rising 8.7%, according to Economic Times data. Consumer durables output touched an eight-month high while capital goods also posted strong gains, suggesting demand and investment activity have held up despite global rate uncertainty. This data point offers a fundamental counterweight to the day's more sentiment-driven equity moves.
Order Wins Lift Select Mid-Caps
Tejas Networks shares rallied 13% after TCS issued a Letter of Intent worth ₹1,537 crore for RAN equipment supply covering 18,685 sites under BSNL's indigenous 4G rollout, per CNBC-TV18. Meanwhile, Aurobindo Pharma's API facility in Andhra Pradesh received three US FDA observations, which the company described as procedural, and AXISCADES announced a ₹234 crore acquisition of a 90% stake in Cloud Wave to expand into aerospace manufacturing.