Latest Stock Market News

Pranab Uniyal of HDFC Tru expects the Indian stock market to regain momentum with Nifty hitting a record high by FY26. Largecap stocks, infrastructure, real estate, and domestic economy sectors are seen as key drivers, supported by earnings growth forecasts and strong mutual fund investor participation.

Indian stock market slipped as Reliance Industries, HDFC Bank, and Infosys dragged indices lower, with Nifty falling below the 100 EMA, signaling weakness. Analysts see support at 24,150–24,400 and resistance near 24,650. Stock picks include Lumax Industries and Authum Investment with bullish setups.

Foreign institutional investors turned sharply bearish in August, pulling out nearly Rs 35,000 crore from Indian equities—their biggest monthly outflow in 2024. FIIs slashed exposure to financials and IT amid tariff shocks and muted earnings. While some technical indicators suggest a potential rebound in September, broader sentiment remains cautious, with domestic reforms and festive demand offering possible triggers.

Nifty seasonality in September has leaned bearish, slipping in six of the past ten years as FII selling weighed on sentiment. Despite steady DII buying in September, volatility persists. Historical performance highlights sector rotation, with a cautious technical view guiding investment strategy for the month.

Notably, 10 SME IPOs have seen a sharp decline of over 50% from their issue price, marking them as significant underperformers.

Markets reflect cognitive biases, interpreting events differently. Equity markets anticipate consumption revival from GST reforms, while bond and currency markets price fiscal and macro risks. Persistent FII selling and a weakening Rupee highlight underlying stress, challenging India’s macro stability despite robust fundamentals.

India’s capital markets are poised for a new growth phase driven by retail participation, ETF and index fund adoption, and expanding REIT and InvIT markets. Stablecoins and unified regulatory frameworks could further deepen liquidity, boost investment diversity, and enhance market oversight over the next decade.

Indian equities closed August with a second consecutive month of losses as Nifty fell 1.38%, pressured by U.S. tariff shocks, foreign fund outflows, and profit-taking. Despite this, strong GDP growth and upcoming GST reform talks provide potential buffers. Geopolitical developments, including Modi’s China visit, and domestic growth triggers will test whether markets can recover in September.

HSBC India warns that India’s June quarter GDP growth of 7.8% may be overstated due to low deflators, especially in services and manufacturing. Inflation adjustments risk inflating real growth. External pressures like US tariffs and GST revenue impacts pose further challenges. Economists emphasize cautious optimism and stress the need to monitor growth sustainability amid evolving fiscal and global dynamics.

Despite a weak August for D-Street, 10 BSE smallcap stocks defied the broader selloff, surging up to 55%. Names like Yatra Online, Apollo Micro Systems, and Rishabh Instruments led the month’s standout rally.