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Indian Markets See Broad Sectoral Challenges Amid IPO Surge

By Mandar in Indian Market Insights —

Market Overview

The Indian stock market experienced significant volatility and faced sector-specific challenges after the last market close.

  • The Nifty 50 index saw a sharp drop of 672 points (2.65%), closing at 24,655.
  • The BSE Sensex fell 2,200 points, closing at 80,426.
  • This decline reflected a bearish sentiment across the market.

Investor Behavior

The market witnessed a scenario where FIIs sold off their holdings while DIIs tried to counter it.

  • Continuous FII outflows were present
  • DIIs bought substantial holdings worth Rs 11,827 crore during the week, but they were not able to recover loss.

Currency and Economic Factors

The Indian rupee weakened against the US dollar.

  • The Indian rupee closed at a low of 88.63 against the US dollar.
  • This was influenced by global currency trends and domestic economic factors.

Sectoral Impacts

Several sectors were negatively impacted by specific policy and market events.

  • A hike in H-1B visa fees affected technology stocks.
  • The imposition of 100% tariffs on patented pharmaceutical imports to the US impacted the pharma sector.

Market Capitalization Losses

Major companies experienced significant losses in market capitalization.

  • Tata Consultancy Services (TCS) lost nearly Rs 97,600 crore in market capitalization.
  • Reliance Industries and Infosys also saw notable valuation losses, revealing widespread sectoral pressure.

IPO Market Activity

The primary market showed considerable activity despite the secondary market challenges.

  • September 2025 witnessed 11 IPO listings.
  • Half of these companies saw their share prices fall below their issue price post-debut.
  • Upcoming: The market anticipates 21 more public issues worth above Rs 4,450 crore.

Outlook and Concerns

Investors and analysts are cautious about the market's future performance considering global and domestic factors.

  • Slower global growth signals
  • Subdued IT sector outlook due to weak earnings and job cuts
  • Ongoing geopolitical and economic uncertainties impacting domestic consumption and investment