The Nifty 50 settled at 23,779.15, down 118.55 points, or 0.50 per cent, while the Sensex fell 382.62 points to 76,132.81 as equities extended their losing streak on Monday. The decline was weighed down by a sharp rise in crude oil prices amid renewed concerns over the Strait of Hormuz and growing fears of a Federal Reserve rate hike following stronger-than-expected US jobs data. Brent crude traded near $96.7 a barrel, while WTI held in the $90-$93 range, with both crude benchmarks having already gained around 8 per cent and 10 per cent respectively last week, marking their strongest weekly gains since July. The Indian rupee remained relatively stable at around ₹84.4 to the US dollar, aided by RBI intervention, even as elevated crude prices weighed on the currency.
The primary market witnessed robust investor interest with Iberia Pharmaceuticals India Limited IPO achieving strong subscription of [●] times across all categories. The IPO subscription opened on bidding day from 10:00 AM to 5:00 PM and showed exceptional demand across retail, non-institutional investors, and qualified institutional buyers. This strong subscription pattern indicates positive market sentiment toward new offerings despite broader market volatility. The IPO market momentum continues with 12 IPOs set to open this week, collectively targeting around ₹7,000 crore, making it a particularly active week for primary market activity.
Udaan has finalized the acquisition of Swiggy-owned retail distribution company Lynk Logistics for ₹500 crore, with the transaction valued at this amount. According to the latest company statement, Swiggy will receive a 2.8% stake in Udaan and make a primary equity investment of ₹75 crore in TIPL for an additional about 0.4% stake in udaan. The acquisition comes less than two months after Udaan raised $160 million through a mix of fresh equity, debt and debt-to-equity conversion. The deal involves Swiggy's wholly owned subsidiary Swiggy Networks Ltd selling its entire shareholding in Lynks Logistics Ltd to udaan's parent firm Trustroot Internet Pvt Ltd (TIPL) through a share swap, with the transaction settled by issuing preference equity shares.
Shares of defence equipment manufacturers are expected to be in focus as the defence ministry on Monday approved the acquisition of military hardware for the three services. According to reports, the Defence Acquisition Council (DAC) headed by Defence Minister Rajnath Singh accorded Acceptance of Necessity (AoN) for various acquisition proposals at an estimated cost of ₹1.10 lakh crore. The procurement includes radars, advanced light helicopters and mechanical mine layers to boost the military's overall combat prowess. The GIFT NIFTY futures suggest that the NIFTY50 index will open 80 points lower on Tuesday, September 8.
Shares of Indian IT companies fell up to 3% on Monday as strong US jobs data raised expectations of a September interest rate hike by the Federal Reserve. The Nifty IT index fell over 2% to 30,082, leading the decline across all major sectoral indices. Infosys, LTI Mindtree, and Mphasis slid around 3% each, while Tech Mahindra, OFSS, Coforge, HCL Technologies, Wipro, Persistent Systems, and TCS fell 1-2%. Higher US rates could reduce client spending and hurt Indian IT firms, which earn a significant share of their revenue from the United States. The data boosted expectations of a September rate hike by the Federal Reserve, with traders pricing in a 57% chance of a rate increase this month, which has now risen to nearly 60% following the stronger-than-expected US non-farm payrolls data for August at 162,000 against expectations of around 56,000.
Selling was broad-based across sectors, with IT and Media emerging as the worst-performing sectors, declining 2.3 per cent and 3 per cent, respectively. PSU Banks, Realty, Metals and Cement also declined over 1 per cent each. However, Pharma and Auto bucked the trend, with Nifty Pharma gaining 0.4 per cent as investors favoured defensive sectors. Bank Nifty ended at 57,088.30, down 281.35 points, while the Nifty Midcap 100 declined 0.5 per cent, indicating selective buying in the broader market. India VIX rose 5.62 per cent, signalling heightened volatility. Primary market activity remained strong, with 12 IPOs set to open this week, collectively targeting around ₹7,000 crore, making it a busy week for the primary market. Markets will track US inflation data this week, the last major economic release ahead of the Fed's September 15-16 policy meeting.
