The Nifty India Internet index emerged as the standout performer in August, rallying 8% while the benchmark Nifty 50 slipped 1.3% to 24,055.8, as reported by Business Standard. This sharp divergence highlights the contrasting performance between traditional and new-age digital businesses during the month. The Nifty India Internet closed at 1,458.4, driven primarily by block deals and the Morgan Stanley Capital International (MSCI) rejig that benefited several key constituents. Recent market developments show Nifty fell 0.1% to 24,055.8 and Sensex slipped 0.02% to 76,944.28 on Tuesday, with banking, auto and pharma stocks dragging performance. The Nifty 50 closed at 24,055.80 points, down 0.1% from Monday's close, while the BSE Sensex ended flat at 76,944.28 points after failing to hold intraday gains amid crude oil price surge.
August proved to be the busiest month for initial public offerings (IPOs) this year, with 22 mainboard issuances raising ₹21,730 crore through fresh issues, according to Prime Database as reported by Business Standard. However, July remained the highest in terms of value at ₹28,648 crore raised. The Nifty IPO index gained 4% during the month, with Lenskart, which has the highest weight of 7% in the index, gaining 17.74% over the past month. Hy-Tech Engineers listed at ₹75, a premium of 41.5% to the issue price of ₹53, with shares trading at ₹78.75, up nearly 49% on listing day. The company's issue was subscribed 244.41 times with bids placed for 4.43 billion shares against 18.15 million shares on offer. Rays of Belief IPO opened for subscription on Tuesday, with the ₹125-crore issue entirely comprising a fresh issue of 52.30 lakh shares, priced at ₹227–239 per share with a 20% grey market premium. The company raised ₹50 crore from anchor investors ahead of the issue, with shares scheduled to list on September 8.
During the 30-day period ended August 31, Urban Company led the advance with a 29.84% surge, followed by Paytm parent One 97 Communications, which climbed 21.63%, and PolicyBazaar parent PB Fintech, which rose 14.22%, according to Business Standard. Eternal, Groww parent Billionbrains Garage Ventures, and Swiggy received fresh tailwinds from the MSCI index rejig, with Groww being a new entrant to the index while Eternal and Swiggy saw their weights increase. However, stock prices remained subdued due to profit booking despite the MSCI inclusion benefits. Maruti, SBI and IndiGo led losses in recent trading sessions, while ITC, HCL Tech and Bharti Airtel gained, cushioning the broader market decline. ITC emerged as the top gainer, rising over 4% and replacing HCL Technologies as the top performer on the index, while Bharti Airtel gained over 3%. Recent trading sessions showed Info Edge and Adani Green Energy were up over 4% and were the top gainers in the Nifty 200 constituents, while Kei Industries were the worst performers, down more than 5%.
The Nifty Financial Services index was the worst hit and ended 2% down, followed closely by the Nifty Healthcare index. The Nifty IT index performed the best and closed with gains of nearly 1%, while the Nifty Oil & Gas index came off lows and was largely unchanged. Mid-cap indices fell significantly more than benchmarks, ending over 1% lower each, while small-cap indices fell 0.1-0.3%. Shriram Finance was the worst-hit stock in the Nifty 50 index, falling over 4%, while Maruti Suzuki fell over 4% after its August dispatches missed analyst expectations. Sun Pharmaceutical Industries fell nearly 2% after signing a pact with the US administration to extend "Most Favoured Nation" pricing. Brent crude oil futures rose almost 4% from Monday's lows to over $92 per barrel after US President Donald Trump threatened more severe military strikes against Iran. The Indian bond market saw a downturn, reflecting a broader global selloff in debt markets, with foreign investors experiencing their first month of securities outflows in August.
