IT Weakness Sinks Benchmarks
The Sensex closed lower by 329.91 points (0.44%) at 74,529.08 and the Nifty fell 85.30 points (0.36%) to 23,329, snapping a four-session winning streak as IT and financials dragged despite crude oil easing for a fifth straight session. Nifty IT was the standout laggard, down 0.94% to 28,582.1, as demand and earnings concerns resurfaced ahead of the results season. Technically, 23,300 is now the key support level analysts are watching, with a break below potentially dragging the index toward 23,000, while 23,500 remains the stubborn overhead hurdle.
NSE Listing Day Arrives
NSE's ₹22,561-crore IPO — India's second-largest ever after Hyundai Motor India — drew a record ₹90,000 crore in demand and finished 5.71 times subscribed, with allotment finalized ahead of its September 24 BSE listing. LIC emerged as the single largest bidder at roughly ₹4,500 crore, joined by ICICI Prudential and Quant Mutual Fund, though retail participation was comparatively subdued at 1.3x versus institutional demand of 12.7x. Grey market premium hints at roughly 4% listing gains, a relatively modest number for an issue of this scale and visibility.
Crude Slide Reshapes Sector Bets
Brent crude has now slipped below $100, trading near 99.19 and briefly touching $98.90 amid talk of potential US-Iran discussions at the UN General Assembly and speculation about the Strait of Hormuz reopening. The move has put oil marketing companies squarely in focus as lower input costs could aid margins, while the rupee strengthened to 95.58-95.59 partly on the back of cheaper oil and RBI dollar sales offsetting corporate dollar demand. Analysts flagged this as a possible trigger for a sectoral pivot toward fairly valued largecaps as bond yields also cooled.
Adani Group Closes Hindenburg Chapter
Five Adani Group companies, including Adani Enterprises and Adani Green Energy, settled SEBI adjudication proceedings tied to related-party transaction disclosures and governance lapses flagged in the Hindenburg Report, paying a collective ₹1.51 crore without admitting or denying wrongdoing. Adani Enterprises alone contributed ₹76.05 lakh to the settlement. The resolution removes a long-running regulatory overhang, though it settles process-related disclosure questions rather than the broader allegations themselves.
Persistent Systems Moves on Nagarro
Persistent Systems has lifted its stake in German IT firm Nagarro to 83% after acquiring an additional 61.15%, setting the stage for a planned delisting of the company. The move comes even as the broader Nifty IT index underperformed on demand worries, underscoring a divergence between company-specific consolidation plays and sector-wide sentiment. The stock remains one of the most closely watched names heading into Wednesday's session.
FII Selling Jumps, DIIs Absorb the Flow
Foreign institutional investor selling surged more than sixfold to ₹3,810 crore, a sharp reversal from the prior session's ₹576 crore outflow, while domestic institutional investors stepped up buying to ₹4,120 crore from ₹2,797 crore. This continuing tug-of-war between FII caution and DII support has been a defining feature of recent sessions and helps explain why the Sensex and Nifty diverged in performance on Tuesday. Bernstein separately cautioned that many FIIs may trade India tactically but see limited reasons to structurally invest, citing large-cap consolidation over forward-looking capital allocation.
IPO Market Hits Three-Decade High
September has seen the biggest mainboard IPO rush in nearly 30 years, with 30 issues raising roughly ₹38,785 crore, the largest monthly haul since October last year. SEBI Chairman Tuhin Kanta Pandey pointed to a potential ₹2 lakh crore of annual IPO fundraising ahead, noting that 55% of this fiscal year's IPO proceeds have gone toward fresh capital for companies rather than pure share sales. Abakkus Asset Manager's DRHP filing and RHI Magnesita's ₹826-crore block deal, led by SBI Mutual Fund, add further texture to a buoyant primary and secondary market for capital raising.
Regulatory Housekeeping in Focus
SEBI is separately working through a consultation on derivatives expiry settlement prices, weighing a blended VWAP model against a return to the earlier VWAP method, with market participants reportedly favoring the older approach. The RBI, meanwhile, has cautioned banks against an emerging loan price war amid surplus liquidity, warning that aggressive lending to cover funding costs could show up as stressed assets years later. Separately, the RBI amended valuation norms for InvIT and REIT units held by financial institutions, introducing distinct treatment for quoted, unquoted, and infrequently traded units.