The Nifty 50 closed Friday 84.80 points higher at 24,175.65, recovering from an early low of 24,077 and ending near the session high after two consecutive declines. According to latest reports, this marks a reversal from the benchmark indices' August decline that had snapped a two-month winning streak. The Sensex declined 1.5 per cent in August, while the Nifty 50 fell 1.2 per cent, but Friday's recovery indicates potential stabilization. On Monday, the Nifty fell 0.39 per cent to 24,080.40 and the Sensex declined 0.40 per cent to 76,957.27.
Despite the benchmark decline, broader markets extended their winning run to a fifth month, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 2.1 per cent and 3.1 per cent respectively during the month. As reported by Business Standard, this marked their fifth consecutive month of gains, highlighting the selective nature of the market correction. The gains in the midcap and smallcap segments, along with new listings, led to a ₹5 trillion rise in NSE-listed market capitalisation to ₹490 trillion.
The primary market gathered significant momentum after a subdued first half of the year, with 21 mainboard IPOs raising about ₹21,000 crore in August - the highest monthly deal count in 2026. According to Business Standard, together, July and August accounted for ₹49,592 crore, or nearly 69 per cent of the ₹72,165 crore raised through IPOs in the first eight months of the year. CA Kresha Gupta from Steptrade Capital noted that around 22 companies raised more than ₹23,000 crore between them, representing the highest monthly count and fundraising seen in a year.
The month saw heightened volatility after the introduction of the closing auction session (CAS) on August 3, with the mechanism coming under scrutiny again on August 27 during the first monthly derivatives expiry of the Sensex. As reported by Business Standard, Foreign portfolio investors (FPIs) were net buyers in August, deploying around ₹20,000 crore through primary and secondary market investments, similar to their July investment levels. Investor appetite was reflected in strong listing-day performances, with Tempsens Instruments more than doubling on debut on August 28, delivering the year's biggest listing gain.
