Market Commentary - Quick Review
The key equity benchmarks ended with modest losses today, extending their decline for the fourth consecutive trading session, despite positive economic data, including robust inflows through Foreign Currency Non-Resident Bank (FCNRB) deposits, which reportedly exceeded $120 billion, along with continued buying by foreign institutional investors (FIIs). The Nifty settled below the 23,900 mark at the close after touching an intraday high of 24,025.40 in early trade.
IT, FMCG and auto shares declined while realty, media and private bank shares advanced.
As per provisional closing data, the barometer index, the S&P BSE Sensex declined 417.49 points or 0.55% to 76,152.86. The Nifty 50 index added 41 points or 0.17% to 23,873.45. in the four consecutive trading sessions, the Sensex and the Nifty declined 1.44% and 1.25%, repectively.
In the broader market, the BSE 150 MidCap Index added 0.15% and the BSE 250 SmallCap Index rose 1.01%.
The market breadth was positive. On the BSE, 2,552 shares rose and 1,769 shares fell. A total of 230 shares were unchanged.
Economy:
The Reserve Bank of India (RBI) on Wednesday said forex inflows under its special USD-INR forex swap facility stood at $136.38 billion as of 31 August 2026, according to provisional data reported by authorised dealer banks.
The inflows included $127.23 billion through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, while overseas foreign currency borrowings (OFCBs) contributed $5.26 billion and external commercial borrowings (ECBs) accounted for $3.89 billion.
Services activity expanded at a faster pace in August, although the rate of growth remained the second-slowest since March 2022. The seasonally adjusted HSBC India Services PMI Business Activity Index, which measures changes in business activity compared with the previous month, rose to 54.1 in August from 53.3 in July. However, the index remained slightly below its long-run average of 54.5.
The acceleration in services activity offset a slowdown in manufacturing growth, resulting in the overall pace of private sector expansion remaining unchanged in August. The HSBC India Composite PMI Output Index stood at 54.3 in August, the same level as recorded in July.
New Listing:
Shares of Lumino Industries were at Rs 111.50 on the BSE, representing a premium of 35.98% as compared with the issue price of Rs 82.
The stock debuted at Rs 109 on the BSE, a premium of 32.93% over its issue price.
The stock has hit a high of Rs 119 and a low of Rs 106.48. On the BSE, over 1.59 crore shares of the company were traded in the counter.
IPO Update:
Rays of Belief received bids for 31,59,44,684 shares as against 31,37,810 shares on offer, according to stock exchange data at 15:30 IST on 3 September 2026. The issue was subscribed 100.69 times.
The issue opened for bidding on 1 September 2026 and will close on 3 September 2026. The price band of the IPO is fixed between Rs 227 and 239 per share. An investor can bid for a minimum of 62 equity shares and multiples thereof.
Deepa Jewellers received bids for 71,88,89,724 shares as against 1,85,20,085 shares on offer, according to stock exchange data at 15:30 IST on 3 September 2026. The issue was subscribed 38.82 times.
The issue opened for bidding on 1 September 2026 and will close on 3 September 2026. The price band of the IPO is fixed between Rs 168 and 177 per share. An investor can bid for a minimum of 84 equity shares and multiples thereof.
Buzzing Index:
The Nifty IT index fell 0.85% to 30,838.85. The index declined 2.09% in the two consecutive trading sessions.
Tech Mahindra (down 1.65%), HCL Technologies (down 1.37%), LTM (down 1.02%), Mphasis (down 0.81%), Persistent Systems (down 0.69%), Infosys (down 0.66%), Tata Consultancy Services (down 0.6%), Oracle Financial Services Software (down 0.37%) and Wipro (down 0.29%) declined.
Stocks in Spotlight:
RBL Bank jumped 4.75% after the bank announced that its board will meet on Monday, 7 September 2026, to consider establishing a Euro Medium Term Note (EMTN) Programme. Under the proposed programme, the bank may issue foreign currency bonds, notes or other debt securities from time to time through one or more tranches, subject to market conditions and applicable regulatory requirements. The proposed fundraising will be undertaken through permissible modes under the EMTN Programme and in accordance with applicable laws.
XTGlobal Infotech rose 3.76% after the company announced its selection as a qualified technology partner under a multi-year cloud engineering and technical services program for a U.S. State Government technology authority. The agreement carries an initial two-year term with three additional one-year renewal options, creating a potential five-year contracting framework.
Based on the breadth of services contemplated under the program and its multi-year structure, XTGlobal estimates the aggregate addressable opportunity across the qualified vendor pool could be in the range of USD $50 million to $100 million over the potential five-year period.
Balu Forge Industries fell 1.10%. The company has announced the successful acquisition of a ring rolling production line capable of producing forged rings up to 6.7 meters in outer diameter (OD). This acquisition adds 18,000 tons of specialized heavy ring rolling capacity with a high-value-addition product line. The ring rolling production line will commence the production trial before the end of 2026.
Housing & Urban Development Corporation added 1.41% after the company announced that it has signed a memorandum of understanding (MoU) with the Government of Bihar for providing financial assistance for proposed industrial parks. As per the MoU, HUDCO would provide financial assistance to the extent of Rs 25,000 crore over a period of five years for development of industrial infrastructure including acquisition of land for the projects.
Inox Wind rallied 5.01% after the company secured a repeat turnkey order from Indian Oil Corporation for a 100 MW wind power project, with a contract value of approximately Rs 755 crore.
Autoline Industries zoomed 10.52% after the company announced that it has secured a new business award from Tata Motors Passenger Vehicles for the supply of critical components for SUV applications. The business is expected to generate annual incremental revenue of approximately Rs 100 crore.
Global Market:
Most of European markets declined while Asian shares ended mixed as investors turned their attention to key services activity and labour-market data for further cues on the health of the domestic economy and the outlook for monetary policy
Brent crude eased after rising more than 8% over the previous three sessions, as US President Donald Trump indicated that renewed attacks on Iran were unlikely to continue for long. The easing in oil prices also helped global bond markets stabilise, with US Treasury yields retreating from recent multi-year highs. Investors, however, remain focused on the conflict and its impact on energy supplies.
Wall Street rebounded on Wednesday, with the Dow Jones Industrial Average rising 295.01 points, or 0.56%, to 53,061.89, while the S&P 500 gained 35.16 points, or 0.46%, to 7,666.63. The Nasdaq Composite advanced 118.05 points, or 0.45%, to 26,217.83. The recovery was supported by buying in technology and other recently weak stocks, although oil prices remained elevated amid the ongoing conflict.
The market focus has also shifted to US labour-market data. Private-sector hiring increased at a slower pace in August, while traders are watching Friday's nonfarm payrolls report for confirmation of whether labour-market weakness could influence the Fed's interest-rate decision. Markets are currently pricing roughly a 66% probability of a 25-basis-point rate hike in September.
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