Indian equity markets showed volatility on Monday and ended in red with the Sensex declining 372.10 points (0.48%) to settle at 76,728.37 and Nifty 50 dropping 109.75 points (0.46%) to close at 23,946.25. According to latest market data, investors booked profits and rising crude oil prices, triggered by renewed hostilities between the US and Iran, weighed on market sentiment. However, the market is likely to open mildly positive as trends in the Gift Nifty index signalled a cautious undertone, with Gift Nifty trading near the 24,011 mark, down over 38 points from the previous close. The mixed sentiment comes as markets in the Asia-Pacific region traded with varied performance following developments in the Middle East, where the US attacked Iranian military targets over the weekend in retaliation for Tehran's strikes along the Strait of Hormuz. Recent market data shows Brent crude trading in the $70–71 per barrel range following the latest military exchanges, with brokerages recommending buying in cement, Bajaj Finserv, OMCs and TVS stocks.
HDFC Bank has named former Financial Services Secretary Rajiv Kumar as its part-time chairman for a four-year term, effective June 30, with the appointment approved by the Reserve Bank of India. Bajaj Auto announced that its share buyback offer will open for tender on July 1 and conclude on July 7, after shareholders approved the proposal earlier this month. Yes Bank board approved raising up to ₹7,500 crore through eligible securities and an additional ₹8,500 crore via debt securities, subject to necessary shareholder and regulatory approvals. SIS has in principle approved a proposal to buy back shares worth up to ₹120 crore, marking its fifth share buyback since listing in August 2017. Afcons Infrastructure board recommended a final dividend of ₹2 per share for FY25-26 with July 23 as the record date.
Persistent Systems announced on Saturday that it will take over German digital engineering company Nagarro SE at EUR 81 per share, creating a global AI-led digital engineering powerhouse with USD 2.9 billion in revenue run-rate. As per the company release, "Galaxy Germany Holding SE, a wholly-owned direct subsidiary of Persistent Systems Limited, today announced a voluntary public takeover offer for all outstanding shares in Nagarro SE at a cash consideration of EUR 81 per share." The combination would be a USD 2.9 billion AI-led engineering juggernaut with 46,000-plus employees in more than 40 countries, including about 37,000 in India, nearly 3,500 in North America, and around 3,000 in Europe. The transaction is expected to close by early 2027.
IT sector faces continued headwinds with Citi downgrading most IT stocks and Goldman Sachs staying cautious except for TCS on valuation grounds. The sector is heading towards fourth straight year of low single-digit growth with sector EBIT margins likely to decline ~30 bps QoQ. However, TCS maintains Buy rating with target price of ₹2,410 due to relatively better valuation comfort. Strides Pharma Science announced a significant divestment on Saturday, divesting majority stake in its wholly-owned arm Pivot Path for ₹100 crore to a consortium of investors led by Ascent Capital, along with co-investor Vintage. The market faces rising equity supply to cap returns with estimate of $35-45 billion supply pipeline for remaining July-Dec 2026, while FPI outflows crossed $30 billion in CY26.
RITES announced that it has entered into a Memorandum of Understanding with Container Corporation of India Ltd (CONCOR) to jointly offer project management consultancy services for logistics infrastructure projects. Sterling & Wilson Renewable Energy announced that its 50:50 joint venture with Hassan Allam Construction has been awarded a Letter of Award worth approximately $560 million for the West Minya Solar Project in Egypt. SJVN has entered into Power Purchase Agreements with Gujarat Urja Vikas Nigam to supply electricity from three upcoming hydroelectric projects in Himachal Pradesh. Bharat Petroleum Corporation is set to acquire a 40% stake in Tiki Tar and Shell India Private Ltd. for ₹85 crore, marking its foray into India's rapidly expanding value-added bitumen segment. As per Ponmudi R, CEO of Enrich Money, "Indian equity markets are expected to trade with a cautious bias as investors closely monitor renewed geopolitical tensions ahead of the next round of U.S.–Iran negotiations."
