Author: Kairav Roy

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Corporate

Sensex falls 180 points, Nifty below 24,250

Indian benchmark indices ended lower on Wednesday, August 26, reversing their early gains as selling in IT, telecom and infrastructure stocks weighed on the market. The Sensex fell 183.16 points, or 0.24%, to close at 77,472.94, while the Nifty 50 declined 126.80 points, or 0.52%, to settle at 24,207.75. Both indices ended near their day’s lows.

The market had started on a positive note, with the Sensex gaining more than 300 points at one stage and the Nifty moving above 24,350. However, the momentum faded as investors turned cautious and selling intensified in the second half of the session. Weakness in IT stocks and heavyweights such as Reliance Industries added to the pressure.

Kotak Mahindra Bank emerged as the top Nifty gainer, rising 3.76% by the close. Axis Bank followed with a 1.62% gain, while JSW Steel climbed 1.57%. UltraTech Cement advanced 1.53% and HDFC Life Insurance gained 1.15%. The gains in banking and metal stocks offered some support to the broader market but were not enough to prevent the benchmark indices from closing in the red.

Among Sensex stocks, Kotak Mahindra Bank was also the standout performer, gaining around 3.7%. UltraTech Cement and Axis Bank were other major gainers. Financial stocks benefited from relatively positive sentiment, with private banks showing resilience even as investors remained cautious about the wider market direction.

On the other side, Bharti Airtel was the biggest Nifty loser, falling 2.31%. Power Grid Corporation declined 2.14%, while Infosys slipped 2.10%. Larsen & Toubro fell 1.96% and Nestle India dropped 1.86%. The weakness in these large-cap counters contributed significantly to the Nifty’s decline.

Infosys was also among the major drags on the Sensex, with the stock losing about 1.9%. The broader IT sector remained under pressure, with Tech Mahindra, TCS, HCLTech and other technology stocks also ending lower. Market participants continued to assess concerns around rising costs for Indian IT companies and the impact of changing US immigration policies.

Reliance Industries was another important drag on the market. The stock declined around 1.4%, adding to the pressure on the benchmark indices because of its significant weight in the Nifty and Sensex. The selling showed that investors were not willing to aggressively chase large-cap stocks despite the positive opening.

The broader market presented a more mixed picture. The Nifty Midcap 100 declined 0.10%, while the Nifty Smallcap 100 gained 0.81%. This indicated that buying interest remained in selected smaller companies even as investors reduced exposure to some large-cap stocks.

In the midcap segment, Steel Authority of India was among the strongest performers, gaining 5.59%. GE Vernova T&D India rose 3.70%, while LIC Housing Finance advanced 3.64%. Motilal Oswal Financial Services and NMDC also recorded notable gains.

The small-cap space was stronger. IDBI Bank rose 7.86%, making it one of the biggest gainers in the segment. Capri Global Capital gained 6.60%, while Ola Electric Mobility advanced 5.14%. Data Patterns and Physicswallah also posted gains of more than 4%.

On the losing side of the midcap segment, Tata Communications fell 3.29%, Billionbrains Garage Ventures declined 3.24%, and Jubilant FoodWorks dropped 3.01%. Premier Energies and Vishal Mega Mart were also among the notable decliners.

Crude oil prices provided some relief to Indian markets. Brent crude fell below $86 a barrel, while WTI crude declined further. Lower oil prices are generally positive for India because the country imports a substantial portion of its crude requirements. Cheaper oil can ease pressure on the import bill, inflation and corporate costs.

However, the decline in crude was not enough to sustain the early rally. Investors remained focused on global developments, including US interest-rate expectations, geopolitical tensions and upcoming US economic data.

The Indian stock market is also watching the US Core Personal Consumption Expenditures inflation reading, an important indicator for the Federal Reserve’s monetary policy outlook. A softer reading could support expectations of easier monetary policy and improve sentiment towards emerging markets, while stronger inflation could keep investors cautious.

Wednesday’s session therefore reflected a market caught between supportive domestic and global factors and renewed selling pressure in key sectors. Banking and metal stocks provided some stability, while IT, telecom and infrastructure counters pulled the benchmarks lower.

The immediate focus will be on whether the Nifty can recover the 24,250 level and whether buying returns to heavyweight stocks. With global cues, crude oil prices, foreign fund flows and US economic data continuing to influence sentiment, volatility is likely to remain elevated in the near term.

 

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Beyond

Gold hits ₹1.63 lakh, silver climbs to ₹2.46 lakh

Gold and silver prices remained firm in India on Wednesday, August 26, with investors closely tracking global economic signals, geopolitical developments and expectations around US interest rates. The latest retail rates showed 24-carat gold at ₹1,63,300 per 10 grams, while 22-carat gold was priced at ₹1,49,692 per 10 grams. Silver of 999 purity stood at ₹2,46,290 per kg, according to India Bullion and Jewellers Association data reported by LiveMint.

The rise comes as international markets remain sensitive to movements in the US dollar, crude oil prices and expectations about the Federal Reserve’s next policy move. Gold has traditionally benefited when investors look for protection against economic or geopolitical uncertainty, while silver is influenced by both investment demand and industrial consumption.

On the Multi Commodity Exchange (MCX), October gold futures were trading higher in morning deals. Gold futures gained around 0.16% to ₹1,63,146 per 10 grams, while September silver futures rose 0.64% to ₹2,45,700 per kg around 9:10 am. Later market updates showed gold and silver continuing to trade near these elevated levels.

The softer US dollar has provided some support to precious metals. A weaker dollar generally makes dollar-denominated commodities more attractive to buyers holding other currencies. At the same time, Brent crude prices dropped sharply, with oil trading around $86 a barrel in early Indian trade. The decline followed indications that Iran had resumed discussions with Oman over arrangements concerning the strategically important Strait of Hormuz.

However, the global gold market remained cautious. International spot gold eased on Wednesday after touching a more than three-month high in the previous session. Reuters reported that spot gold was down around 0.6% at $4,630.72 an ounce, while US gold futures slipped 0.2% to $4,687.20. Investors were waiting for fresh US inflation data and signals from the Federal Reserve before making larger bets on bullion.

The key data point is the July Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. The figures are expected to provide clues about the direction of US monetary policy. Markets have recently reduced expectations of another interest-rate hike, although uncertainty remains because inflation is still above the Fed’s long-term target.

Interest-rate expectations matter greatly for gold. Unlike bonds or bank deposits, gold does not generate regular interest income. Therefore, when interest rates are high or expected to rise, holding gold can become relatively less attractive. Conversely, expectations of stable or lower rates can encourage investors to increase their exposure to the precious metal.

The upcoming Jackson Hole economic symposium is another factor keeping traders cautious. Federal Reserve Chair Kevin Warsh is scheduled to speak on Friday, and investors will be looking for indications about the central bank’s approach to inflation and interest rates. Any shift in expectations could trigger sharp movements in gold and silver prices.

Geopolitical developments are also influencing bullion sentiment. Continuing uncertainty surrounding the Middle East, US-Iran tensions and the Strait of Hormuz has kept safe-haven demand in focus. Although lower crude prices have eased some inflation concerns, investors remain alert to any development that could disrupt energy supplies or global trade.

Silver has also been attracting attention after its recent gains. MCX September silver futures rose by more than ₹2,000 per kg in early trade to around ₹2,46,180 per kg, while international spot silver was trading close to $69 an ounce. Silver’s appeal comes from its dual role as a precious metal and an industrial commodity, making its price sensitive to both investor sentiment and expectations for global economic activity.

City-wise retail rates also showed modest differences. In Delhi, 24-carat gold was priced at ₹1,62,870 per 10 grams and 22-carat gold at ₹1,49,298. Mumbai recorded 24-carat gold at ₹1,63,150 and 22-carat gold at ₹1,49,554. In Chennai, the corresponding rates were ₹1,63,560 and ₹1,49,930. Silver 999 was quoted at ₹2,45,770 per kg in Delhi, ₹2,46,190 in Mumbai and ₹2,46,730 in Chennai.

Wednesday’s movement highlights how quickly gold prices and silver prices can respond to global developments. While the broader outlook for precious metals remains supported by geopolitical uncertainty, central-bank demand and expectations around US monetary policy, short-term volatility is likely to remain high.

With US inflation data and the Federal Reserve’s policy signals still ahead, traders are likely to watch every major economic indicator before taking fresh positions. For consumers planning to buy 24K gold, 22K gold or silver, checking the latest retail rate, purity and additional charges remains important before making a purchase.

 

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Corporate

Sensex rallies over 250 points, Nifty tops 24,350

The equity markets opened higher on Wednesday as easing pressure in global oil prices and improving geopolitical sentiment encouraged investors to step up buying. The Sensex jumped more than 250 points in early trade, while the Nifty 50 moved past 24,350, giving the market a firmer start after its recent volatility.

The gains came as Brent crude prices eased following developments around the Strait of Hormuz, one of the world’s busiest energy routes. Investors saw the softer oil prices as a positive for India, which relies heavily on crude imports and remains sensitive to changes in global energy costs.

In the morning, the Sensex was trading near 77,979, up about 0.4%, while the Nifty stood around 24,375, higher by nearly 0.2%. Mid-cap and small-cap stocks also remained in demand, pointing to broader participation in the morning rally.

Kotak Mahindra Bank and ICICI Bank featured among the leading Nifty gainers, giving the banking sector a lift. The Nifty PSU Bank index climbed about 1.5%, while private lenders and other financial companies also traded higher.

Oil-related counters benefited from the softer crude environment. BPCL, HPCL and Indian Oil advanced around 1.5% each, as lower international oil prices improved the outlook for fuel retailers. Cyient gained more than 5%, emerging as one of the strongest individual performers following its analyst day.

On the losing side, Jana Small Finance Bank fell nearly 4%, while Federal Bank also traded lower. The weakness followed reports of a possible Federal Bank acquisition of a controlling stake in Jana Small Finance Bank. Investors remained cautious about the potential transaction, particularly given Jana’s exposure to unsecured lending.

Crude oil remained a key driver of the day’s sentiment. Brent crude slipped to around $86 a barrel after Iran and Oman discussed a temporary navigational corridor through the Strait of Hormuz and efforts to clear mines from the strategic waterway. The developments reduced immediate fears of a prolonged disruption to oil shipments.

The movement is significant for India because crude oil prices have a direct bearing on the country’s import bill, inflation and currency stability. Lower energy costs can ease pressure on businesses and consumers while supporting the profitability of industries that depend heavily on fuel.

Overseas markets added to the positive mood. Asian equities largely advanced, while softer global bond yields encouraged investors to seek opportunities in emerging markets. The improved global backdrop helped Indian shares absorb some of the uncertainty surrounding geopolitical developments.

Market breadth remained favourable, with most major sectoral indices trading in positive territory. PSU banks, private banks and financial services were among the better-performing segments, while selected auto, FMCG, IT and consumer stocks lagged.

Foreign institutional investors have also shown renewed interest in Indian equities. Foreign investors bought shares worth around Rs 1,593 crore in the previous session, while domestic institutional investors continued to provide support. Sustained institutional buying could help the market maintain its recovery if global conditions remain stable.

The Nifty’s move above 24,350 is important from a technical perspective. Analysts are watching whether the index can sustain this level, with 24,550 emerging as the next potential resistance zone. On the downside, the 24,200-24,220 range is being viewed as an important support area.

The previous session ended with the Sensex at 77,656.09 and the Nifty at 24,334.55. Wednesday’s opening gains therefore placed both benchmarks on firmer ground as traders assessed developments in oil markets and overseas equities.

The immediate market triggers remain crude prices, geopolitical developments, foreign fund flows and global interest-rate expectations. Any fresh disruption around the Strait of Hormuz could put oil prices back under pressure, while continued easing in crude could provide further support to Indian stocks.

The market’s early gains point to improving risk appetite, but investors are likely to remain cautious amid geopolitical uncertainty and global oil price movements. Sustained buying in banking and financial stocks could provide further momentum if crude prices remain contained.

As of now, the combination of lower oil prices, stronger banking shares and positive global cues has given Dalal Street a solid start. Traders will be watching whether the Nifty can consolidate above 24,350 and whether the Sensex can approach the 78,000 mark as the session progresses.

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Corporate

Sensex climbs 280 points, Nifty closes above 24,300

The market staged a strong recovery on Tuesday, August 25, after opening sharply lower, as easing crude oil prices and reduced concerns over the immediate impact of fresh US sanctions on Iran helped investors regain confidence. The Sensex gained nearly 287 points to close at 77,656.09, while the Nifty 50 added 115.50 points, or 0.48%, to end at 24,334.55.

One of the biggest factors supporting the rebound was crude oil. Brent crude had fallen more than 2% in the previous session and remained relatively subdued as traders assessed the latest US sanctions on Iran. Reuters reported that Brent fell about 3.2% to around $89.20 a barrel during Tuesday’s session. The market took some comfort from the fact that Washington’s latest move focused on economic sanctions rather than a fresh military escalation.

For India, lower crude prices are particularly important because the country depends heavily on imports to meet its energy requirements. A sustained fall in oil prices can reduce pressure on the import bill, inflation and the rupee, while also lowering input costs for several industries. Investors therefore treated the decline in crude as a positive signal despite continuing geopolitical risks.

The rupee also remained relatively stable. The Indian currency opened at around Rs 95.72 against the US dollar, compared with Monday’s close of Rs 95.74. Although the rupee remains under pressure from high oil prices and global uncertainty, the absence of another sharp fall provided some relief to equity investors.

The broader market picture was mixed. According to Reuters, 12 of the 16 major sectoral indices ended higher. Financial stocks and IT shares recovered in the final hour, gaining around 0.3% and 0.6%, respectively. The Nifty Midcap 100 gained about 0.5%, while the Nifty Smallcap 100 slipped 0.1%, showing that buying interest was stronger in selected large and mid-cap stocks rather than across the entire market.

Among individual stocks, Vodafone Idea was one of the notable gainers, rising around 8% during the session. The stock continued to attract buying interest amid expectations around a potential SBI-led debt restructuring arrangement. Cyient also gained more than 7%, while fertiliser stocks remained strong, with Fertilizers and Chemicals Travancore gaining more than 11% in market data during the session. Paradeep Phosphates and One97 Communications were also among the prominent gainers.

On the other hand, Hindustan Copper was among the biggest losers. Its shares fell more than 7% after the government announced an offer for sale of a 3% stake, with an option to sell another 3% if the issue is oversubscribed. The government offered the shares at a discount to the prevailing market price, putting immediate pressure on the stock.

Federal Bank and Jana Small Finance Bank also declined after reports that Jana’s promoter could sell its entire 16.9% stake to Federal Bank. Federal Bank later said there was no material event requiring disclosure in connection with the report.

Within the Nifty 50, Adani Enterprises was among the stronger performers during the day, while Apollo Hospitals, Max Healthcare, Adani Ports, Eternal and Shriram Finance also recorded gains during afternoon trading. On the losing side, Grasim, Cipla, Wipro, HCL Technologies and several metal stocks faced selling pressure earlier in the session.

Metal stocks remained a weak pocket for much of the day. Economic Times reported that metals underperformed in morning trade, while IT and auto stocks also faced pressure. However, the broader market recovered as the session progressed, helped by softer crude prices and improved risk appetite.

Tuesday’s trading session was also important because it marked the first monthly Nifty derivatives expiry under the new closing auction session (CAS) system. The new mechanism has already created differences between the regular market close and the final auction-determined prices, making the last hour more volatile. Analysts said expiry-related positioning contributed to sharper price movements on Tuesday.

The market’s recovery came despite mixed global signals. US stocks had closed lower on Monday, with the S&P 500 and Nasdaq falling 0.28% and 0.76%, respectively, as technology stocks weakened ahead of Nvidia’s earnings. Asian markets also opened largely lower. Investors remained cautious ahead of key US economic data and Federal Reserve Chair Kevin Warsh’s upcoming speech at Jackson Hole.

Gold also remained strong as investors continued to seek safe-haven assets. Gold futures were trading around $4,714.19 an ounce, close to a three-month high, reflecting continued demand for protection against geopolitical and economic uncertainty.

For Dalal Street, the immediate focus is likely to remain on crude oil, developments surrounding Iran and the Strait of Hormuz, foreign investor flows and global interest-rate expectations. Analysts have identified the 24,150-24,100 zone as an important support area for the Nifty, while 24,300-24,400 remains a key resistance region. A sustained move above this range could improve market momentum, while renewed pressure on crude could quickly revive selling.

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Beyond

Gold rises to ₹1,63,640, silver trades at ₹2,43,730

Gold prices remained firm on Tuesday, August 25, with MCX gold trading higher at ₹1,63,640 per 10 grams, while silver futures were quoted at ₹2,43,730 per kg. The movement in precious metals came as investors continued to track geopolitical tensions, the US dollar, interest-rate expectations and developments in global markets.

Gold has remained one of the stronger-performing assets in recent sessions. The precious metal moved to a more than three-month high earlier in the day in international markets, although prices later eased as investors turned their attention to upcoming US inflation data and comments expected from Federal Reserve Chair Kevin Warsh.

In the domestic market, MCX gold futures were trading at ₹1,63,640 per 10 grams. The price has remained close to the ₹1.65 lakh level, reflecting strong demand for the yellow metal. Gold has benefited from a combination of factors, including a weaker US dollar, expectations around US monetary policy and continued geopolitical uncertainty.

Silver, meanwhile, was trading at ₹2,43,730 per kg on the Multi Commodity Exchange. The metal has been more volatile than gold in recent sessions. International silver prices also came under pressure on Tuesday, with spot silver falling more than 1% to around $68 an ounce.

The latest movement comes after a strong rally in bullion prices. Gold had climbed for four consecutive sessions before Tuesday’s correction in the international market. Investors have been buying gold as a hedge against economic and geopolitical risks, while the prospect of easier financial conditions has also supported demand.

One of the major factors influencing gold prices is the US dollar. A weaker dollar generally makes gold cheaper for buyers using other currencies and can therefore increase demand. US Treasury yields and expectations about interest-rate cuts also remain important because gold does not pay interest or dividends.

Investors are now waiting for key US inflation data for further clues about the Federal Reserve’s next policy move. The upcoming speech by Fed Chair Kevin Warsh at the Jackson Hole conference is also being closely watched. Any indication of a change in the central bank’s approach to interest rates could influence both the dollar and gold prices.

Geopolitical developments are another major factor supporting bullion. Tensions between the United States and Iran have increased following Washington’s announcement of tougher measures aimed at putting further pressure on Iran’s economy. Concerns over the wider impact of the conflict have added to demand for traditional safe-haven assets such as gold.

The rise in gold prices has also been reflected in India’s retail bullion market. According to the latest rates, 24-carat gold was around ₹16,397 per gram, while 22-carat gold was around ₹15,030 per gram. The 18-carat rate was about ₹12,293 per gram. Retail prices can vary slightly between cities because of local taxes, transportation costs and jeweller-specific pricing.

For consumers, the difference between 24-carat and 22-carat gold is important. Twenty-four-carat gold has the highest purity and is commonly preferred for investment products such as coins and bars. Twenty-two-carat gold is widely used for jewellery because it is harder and more durable after being mixed with other metals.

Gold jewellery buyers should also remember that the final price is not simply the quoted gold rate. Making charges, GST and other applicable costs are added to the price of jewellery. The amount can therefore vary significantly from one jeweller to another even when the underlying gold rate is similar.

Silver has also seen a sharp rise over the longer term, supported by demand from both investors and industries. Unlike gold, silver has substantial industrial use in electronics, solar equipment, manufacturing and other applications. This means its price can respond not only to investment demand but also to expectations about global economic growth.

The current difference between gold and silver highlights the changing mood in the precious metals market. Gold continues to attract safe-haven buying, while silver has faced some profit-taking after its recent gains. International spot gold was around $4,640 an ounce after touching a three-month high, while silver was around $68 an ounce.

Gold has also recorded a strong rise during August. The domestic market has seen prices move sharply higher from the beginning of the month, keeping the metal close to record levels. This has increased interest among investors looking at gold as part of their portfolios, while high prices have made jewellery purchases more expensive for consumers.

Going forward, bullion traders will closely monitor US inflation figures, Federal Reserve signals, the dollar, Treasury yields and geopolitical developments. Any fresh escalation in the US-Iran situation could increase safe-haven demand and support gold, while a stronger dollar or higher interest-rate expectations could limit its gains..

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Corporate

Sensex falls 200 points, Nifty slips below 24,150

Indian stock markets came under pressure on Tuesday, August 25, as investors remained cautious amid higher crude oil prices, rising tensions between the United States and Iran and uncertainty ahead of the monthly derivatives expiry. The benchmark Sensex fell nearly 200 points in morning trade, while the Nifty 50 slipped below the important 24,150 level.

At around 9:58 am, the Sensex was down 0.24% at 77,184.66, while the Nifty fell 0.32% to 24,142.25. The Nifty later touched 24,136, while the Sensex dropped below 77,150 as selling pressure increased. The fall came after both indices ended lower in the previous session.

The market opened weak as investors reacted to renewed concerns over the impact of US sanctions on Iran. Washington has announced tougher economic measures against Tehran, while Iran has warned of retaliation. The possibility of further pressure on Iranian oil supplies has kept crude prices elevated and added to worries about inflation and India’s import bill.

Brent crude futures were trading around $92.50 a barrel on Tuesday. Higher crude prices are important for India because the country imports a large part of its oil requirement. A sustained rise in oil prices can increase costs for companies, put pressure on inflation and weigh on the Indian rupee.

The weakness was broad-based, although market breadth improved as the session progressed. Fourteen of the 16 major sectoral indices were trading lower in early trade. Metal and information technology stocks faced notable selling pressure. The Nifty Metal index fell around 0.6% in early trade, while the Nifty IT index declined about 0.4%.

Later in the morning, the Nifty Metal index was down 0.90%, while Nifty IT fell 0.66%. Nifty Energy declined 0.56%, Auto dropped 0.54% and Oil & Gas fell 0.51%. Media and PSU Bank stocks were among the few sectors trading higher, gaining 0.35% and 0.23%, respectively.

Among individual Nifty 50 stocks, Adani Enterprises emerged as the top gainer at one point, rising 1.05% to ₹3,030.10. Eternal gained 0.64%, Trent rose 0.57%, Adani Ports advanced 0.40% and Max Healthcare added 0.35%. In another update later in the session, Eternal was up 0.72%, Trent 0.69%, Adani Ports 0.63%, SBI Life Insurance 0.50% and Bharti Airtel 0.34%.

On the losing side, Cipla was down 1.20%, making it the biggest Nifty 50 loser in the latest market update. Hindalco Industries declined 1.13%, HCL Technologies fell 0.91%, Tech Mahindra slipped 0.85% and Tata Motors Passenger Vehicles lost 0.78%. IT stocks were particularly weak, with HCL Technologies and Tech Mahindra among the stocks facing selling pressure.

Banking stocks also showed a mixed trend. AU Small Finance Bank was among the strongest performers in the banking space, gaining around 1.8%. Union Bank of India rose 0.79%, while ICICI Bank and Canara Bank posted smaller gains. On the other hand, IndusInd Bank declined 0.82%, Federal Bank fell 0.88%, Kotak Mahindra Bank lost 0.47% and HDFC Bank was down around 0.40% in one of the morning updates.

The broader market also remained subdued. At one stage, the Nifty Midcap 100 was down 0.13%, while the Nifty Smallcap 100 fell 0.29%. India VIX, which measures expected market volatility, eased 0.61% to 11.46 in late-morning trade, indicating that investors were cautious but there was no major panic in the market.

One of the biggest stock-specific moves came from Hindustan Copper. The stock fell around 6.5% after the government announced an offer to sell up to a 6% stake in the company. The offer was priced at a 10.5% discount to the previous closing price, putting pressure on the shares.

Great Eastern Shipping, meanwhile, gained around 2% after its board announced that it would consider a share buyback proposal. The development gave the stock a boost even as the broader market remained weak.

Investors were also watching the derivatives market closely. Tuesday marked the monthly expiry of Nifty 50 derivatives, which can lead to sharp intraday movements because of futures and options positions. Market participants were also monitoring the impact of the new closing auction session, which is being tested during the monthly expiry.

From a technical perspective, 24,150 has emerged as an important support level for the Nifty. Analysts have identified the 24,000-24,100 zone as the next support area if selling intensifies. On the upside, 24,300-24,400 is seen as an important resistance range, while 24,500 remains a stronger resistance level.

The direction of the Indian stock market is likely to depend on crude oil prices, developments involving the US and Iran, global market cues and foreign investor activity. With the Nifty trading close to the 24,150 support level, investors are likely to watch closely for signs of recovery or further selling pressure as the trading session progresses.

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Corporate

Alibaba shares plunge after $10.2 bn AI funding plan

Alibaba shares fell sharply on Monday after the Chinese technology giant announced an HK$80 billion ($10.2 billion) share placement to fund its artificial intelligence expansion. The move is aimed at strengthening Alibaba’s AI infrastructure, computing capacity and technology portfolio, but investors reacted negatively to the size and discounted price of the fundraising.

Alibaba shares fell as much as 11% in Hong Kong trading, marking their steepest decline in more than a year. The stock later pared some losses but remained under pressure as investors weighed the long-term benefits of the company’s AI strategy against the immediate impact of issuing new shares.

The company said it would issue 710 million new shares at HK$112.70 apiece, raising about HK$80 billion. The price represented an 8.4% discount to Alibaba’s Friday closing price of HK$123. The deal is the largest-ever primary follow-on share offering by a company listed in Hong Kong.

Alibaba has been spending heavily to build its position in the global AI race. The company wants to expand across the AI technology stack, including computing infrastructure, chips, cloud services, large language models and AI applications.

The new funds will support that strategy at a time when competition is intensifying among technology companies in China and overseas. Alibaba is also trying to strengthen Alibaba Cloud, which has become a key part of its AI growth plans.

The company has previously committed 380 billion yuan ($56.5 billion) over three years to AI infrastructure and related investments. A large portion of that spending has already been deployed, highlighting how quickly the cost of competing in artificial intelligence is increasing.

Alibaba has argued that demand for its AI and cloud services is growing strongly. It has also shortened its expected payback period for AI-related infrastructure to around 2.5 years, suggesting management believes rising demand can eventually translate into stronger returns on its investment.

However, the immediate concern for shareholders is dilution. By issuing 710 million new shares, Alibaba is increasing the total number of shares in circulation. Existing shareholders will therefore own a slightly smaller percentage of the company unless the additional investment generates enough growth and profits to offset the dilution.

The discounted issue price added to those concerns. Alibaba shares were trading well above the placement price before the announcement, prompting investors to question why the company needed to raise such a large amount of capital through an equity offering at a discount.

The strong market reaction shows that investors are increasingly demanding evidence that Alibaba’s huge AI spending will generate attractive returns rather than simply increasing costs.

The fundraising comes after Alibaba reported a sharp decline in quarterly profit. The company’s net profit fell 75% year-on-year, even as revenue increased. Heavy investment in AI infrastructure was a major factor behind the pressure on earnings.

Despite the profit decline, Alibaba’s underlying business continues to expand. The company reported 9% revenue growth for the June quarter, indicating that its core businesses remain resilient.

Its cloud and AI operations have become particularly important to the growth story. Investors are increasingly viewing Alibaba not simply as an e-commerce company but as a broader technology platform competing in cloud computing, artificial intelligence and digital services.

That transition, however, requires substantial investment. Alibaba is effectively making a major financial bet that AI will become one of its most important growth engines. The company needs to spend heavily on data centres, computing power and AI models before those investments can generate meaningful commercial returns.

Alibaba’s decision comes as Chinese technology companies accelerate their AI investments. Competition is growing around large language models, cloud computing and AI applications, with companies seeking to develop systems that can compete with leading global models.

The pressure is not limited to China. Alibaba is also competing indirectly with major US technology companies such as Microsoft, Amazon and Alphabet, all of which are spending heavily on AI infrastructure.

This has created a difficult environment for investors. While artificial intelligence is widely viewed as a major long-term growth opportunity, the enormous capital required to build the necessary infrastructure has raised questions about profitability and the eventual return on investment.

Alibaba’s share sale therefore represents both an opportunity and a risk. The company gains access to significant capital without relying entirely on its existing cash reserves. But shareholders are being asked to accept dilution at a time when quarterly profits are already under pressure.

Despite the negative reaction in the stock market, demand for the share placement was strong. Reports said the order book attracted around $28 billion in demand, almost three times the amount Alibaba was seeking to raise. The strong interest suggests institutional investors remain confident in Alibaba’s long-term AI and cloud prospects despite concerns over near-term earnings.

Alibaba Chairman Joe Tsai and CEO Eddie Wu also bought shares separately in the market, according to Hong Kong filings, signalling continued confidence from the company’s top leadership.

The company is now under pressure to show that its AI investments can deliver results. Investors will closely track growth in Alibaba Cloud, AI-related revenue, capital expenditure and free cash flow in the coming quarters.

For Alibaba, the message from Monday’s sell-off is clear. Investors are willing to finance its AI ambitions, but they want proof that the spending can translate into sustainable growth and higher profitability.

The company has secured the money needed for its next phase of expansion. The bigger challenge will be turning that $10.2 billion AI funding into returns strong enough to justify the dilution and restore investor confidence.

 

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Corporate

Sensex ends 170 points lower, Nifty below 24,250

Indian equity markets began Monday’s session on a positive note but gave up their early gains as investors turned cautious amid geopolitical uncertainty and concerns over possible US sanctions against Iran. The benchmark indices ended lower, with the Sensex falling 172 points and the Nifty 50 slipping below the 24,250 mark.

The BSE Sensex closed at 77,369.11, down 170.72 points, or 0.22 per cent, while the NSE Nifty 50 ended at 24,219.05, lower by 32.95 points, or 0.14 per cent. The decline came after both indices had opened higher. The Sensex had gained around 183 points at the start of trading, while the Nifty advanced about 33 points.

The reversal reflected the cautious mood across Dalal Street. Investors remained focused on developments around the US-Iran conflict and the expected announcement of additional US sanctions on Iran. US Treasury Secretary Scott Bessent has described the measures as among the toughest sanctions the country has imposed, while Iran has warned that continued economic pressure could threaten oil exports from the Gulf.

For Indian investors, the geopolitical situation remains important because any disruption to crude oil supplies could affect inflation, the trade deficit and corporate margins. India imports a large share of its crude requirements, making the domestic stock market particularly sensitive to sharp movements in global oil prices.

Interestingly, crude oil prices moved lower during Monday’s session. Brent crude slipped below $93 a barrel, easing by more than $1 as investors booked profits ahead of the US sanctions announcement. The decline in oil prices could normally provide some relief to oil-importing economies such as India. However, uncertainty over the next move in crude kept investors cautious.

The rupee also remained under pressure. The Indian currency, which had opened slightly stronger at around ₹95.64 against the US dollar, gave up those gains and ended at ₹95.74, compared with ₹95.70 in the previous session. The currency’s movement remains closely linked to crude prices, foreign fund flows and the broader strength of the US dollar.

The sectoral picture was mixed. PSU bank stocks came under pressure, weighing on the broader market, while metal and realty stocks performed better. Investors also continued to favour selected technology and commodity-related counters despite the weakness in the benchmark indices.

Among individual stocks, Tata Steel, HCL Technologies and Bajaj Finance featured among the notable gainers, while Adani Ports was among the stocks that faced selling pressure. The mixed movement showed that investors were not exiting the market across the board but were instead shifting money between sectors and individual counters.

In the broader market, several stock-specific developments attracted attention. Vishal Mega Mart surged around 9 per cent following the reappointment of its managing director and CEO. Heranba Industries gained about 9 per cent after reporting a 17 per cent rise in first-quarter profit. Jubilant Pharmova also advanced after receiving US FDA approval for commercial batch manufacturing of its first product on Line 3.

On the other hand, BLS International Services declined sharply after the company rejected allegations relating to visa irregularities. The stock fell around 11 per cent, making it one of the prominent losers in the broader market.

Monday’s weakness also came after Indian equities had already recorded losses in the previous week. The Nifty 50 had ended Friday at 24,252, while the Sensex closed at 77,540.83. For the week ended August 21, the Nifty had declined about 0.5 per cent and the Sensex around 0.6 per cent, with higher crude prices and rising global bond yields weighing on risk appetite.

Market participants are now watching global developments closely, particularly the US announcement on Iran sanctions, crude oil prices and signals from the US Federal Reserve. Investors are also tracking foreign institutional investor flows, currency movements and developments in global bond yields for clues about the next direction of Indian equities.

For the Nifty 50, the 24,250 level remains an important near-term marker after Monday’s close below it. A sustained recovery above this zone could help improve sentiment, while continued weakness may keep investors cautious and expose the index to further selling pressure.

With geopolitical risks still elevated, the Indian stock market is likely to remain volatile in the near term. While softer crude prices offer some comfort, investors may prefer to wait for greater clarity on US-Iran tensions and global monetary policy before taking aggressive positions.

Categories
Beyond

Gold rises to ₹1,63,870, silver at ₹2,47,230

Gold prices started the week on a strong note, with the yellow metal climbing to a three-month high in global markets. Domestic gold futures also moved higher on Monday, August 24, keeping the precious metal in focus as investors and consumers tracked the latest gold rate today.

On the Multi Commodity Exchange (MCX), gold was trading at ₹1,63,870 per 10 grams, while silver stood at ₹2,47,230 per kilogram during morning trade. The latest movement comes as investors assess the outlook for US interest rates, the dollar, bond yields and geopolitical developments.

For Indian consumers, the rise comes at an important time as many households begin planning purchases ahead of the festive season. With gold prices already at elevated levels, even a small daily movement can make a noticeable difference to the final jewellery bill.

International gold prices have been supported by a combination of factors in recent sessions. A weaker US dollar has made the metal more attractive to buyers holding other currencies. Gold is priced internationally in dollars, so a decline in the US currency can encourage demand and provide support to prices.

Lower US Treasury yields have also worked in gold’s favour. Since gold does not generate interest, investors typically compare its appeal with interest-bearing assets such as government bonds. When bond yields decline, the opportunity cost of holding gold falls, making bullion more attractive.

Investors are now waiting for fresh US economic data, particularly inflation figures, for clues about the Federal Reserve’s next move. Any indication that interest rates could be lowered or that monetary policy may become less restrictive could further support gold prices.

The domestic market has closely followed the international trend. MCX gold at ₹1,63,870 per 10 grams marks a significant rise from levels seen earlier in the month. The movement also reflects the impact of currency fluctuations on the Indian market.

The Indian rupee plays an important role in determining domestic gold prices because India imports most of its gold. If the rupee weakens against the US dollar, the cost of imported bullion can rise, adding to the domestic price even when international gold prices remain steady.

Retail gold prices have also remained high across major Indian cities. The exact rate varies depending on the location, purity and market conditions. 24-karat gold, which has the highest purity, generally commands a higher price than 22-karat gold. The latter is widely used for jewellery because it is more durable and easier to work with.

However, consumers should not assume that the quoted gold rate is the final amount they will pay at a jewellery store. Making charges, GST and other applicable costs are added to the basic value of the metal. Buyers should therefore compare the complete jewellery bill rather than focusing only on the per-10-gram gold rate.

Silver, meanwhile, has also remained at elevated levels. MCX silver was trading at ₹2,47,230 per kilogram during Monday’s session. While silver can benefit from the same investment and safe-haven factors that influence gold, its price is also closely linked to industrial demand.

The metal is widely used in electronics, solar panels and other industrial applications. As a result, expectations around global markets and economic growth can have a direct impact on silver prices. This industrial component can also make silver more volatile than gold.

Retail silver prices can vary between cities, just as gold rates do. Consumers buying silver bars, coins or jewellery should check the purity, applicable taxes and additional charges before completing a purchase.

The latest rise in gold has been driven by more than one factor. Expectations around US interest rates remain a major influence, while movements in the dollar and Treasury yields are providing additional support. Geopolitical uncertainty is also keeping investors cautious and encouraging demand for traditional safe-haven assets.

Developments involving the US and Iran, including concerns surrounding the Strait of Hormuz, remain on investors’ radar. Any escalation could increase uncertainty in global markets and potentially strengthen demand for assets such as gold.

Central-bank purchases and investor demand have also remained important for the broader bullion market. These factors have helped gold retain its appeal despite periods of profit-taking and short-term volatility.

With the festive season gearing momentum, for those who are planning to buy gold or silver, the current market is a reminder to keep an eye on prices before making a purchase. Both metals can move sharply in response to global economic data, currency movements and geopolitical headlines.

 

Categories
Corporate

Sensex rises 200 points, Nifty trades at 24,200

The equity markets opened higher on Monday, August 24, where the benchmark Sensex gained more than 200 points in early trade, while the Nifty 50 moved above the 24,300 mark. However, gains remained measured as investors continued to watch developments around possible US sanctions on Iran and their impact on global oil supplies. In fact, a decline in crude oil prices offered some relief to investors worried about the economic fallout from rising tensions between the US and Iran.

The early recovery came after Indian equities suffered losses for two straight weeks. Last week, the Sensex declined 468.42 points, or 0.60%, while the Nifty dropped 114 points, or 0.46%. Elevated crude oil prices, higher global bond yields and continuing geopolitical uncertainty had weighed on investor sentiment.

IT and banking stocks provided much of the support in Monday’s opening trade. Infosys and HDFC Bank emerged among the leading gainers, while HCL Technologies, Tata Steel, Tech Mahindra and Tata Consultancy Services also advanced. Apollo Tyres gained more than 6% after UBS upgraded the stock to Buy from Neutral.

On the other side, Asian Paints, Titan, Power Grid and Bharat Electronics were among the notable laggards. The broader sectoral picture was mixed, with technology, financial services, metals, realty and media stocks showing strength, while consumer durables, public sector banks, automobiles, pharmaceuticals, healthcare and FMCG stocks remained under pressure.

One of the day’s prominent individual movers was Vishal Mega Mart. Its shares jumped around 9-10% after the company announced the reappointment of Gunender Kapur as managing director and chief executive officer for another five-year term. The leadership continuity was viewed positively by investors, with Morgan Stanley also seeing significant upside potential in the stock.

Oil prices provided some breathing room to Indian markets on Monday. Brent crude fell more than 1% to around $93 a barrel, while US West Texas Intermediate crude slipped to about $85.6 a barrel. Investors booked profits after both benchmarks gained more than 5% last week.

The decline in crude prices was particularly important for India because the country depends heavily on imported oil. A sustained rise in crude can increase India’s import bill, put pressure on the rupee, raise inflation risks and potentially affect corporate earnings.

The market, however, remains nervous about the Strait of Hormuz. The strategic waterway has historically carried roughly a fifth of global oil supplies, and any further disruption could push energy prices higher. The latest uncertainty follows stalled US-Iran talks and threats of tougher US sanctions against Iran.

Foreign portfolio investors have shown renewed interest in Indian equities during August, but they remain net sellers for the year. According to market data cited in Monday’s live updates, FPIs have withdrawn around ₹2.3 lakh crore from Indian equities in 2026, although they invested about ₹23,544 crore during August.

The rupee also began the week on a firmer note, gaining seven paise to trade at ₹95.64 against the US dollar. Currency movements will remain important because a weaker rupee can make India’s oil imports more expensive.

Market experts expect the Indian stock market to remain range-bound in the near term. Geojit Investments said the Nifty could move within 24,200-24,600, with crude prices and geopolitical tensions likely to limit the upside. Market analysts are also watching the 24,060-24,000 zone as an important support area.

Global cues remain mixed. Asian markets largely traded lower, with South Korea’s Kospi falling sharply and Hong Kong’s Hang Seng also declining. Investors are also awaiting US inflation data and signals on interest rates from the Federal Reserve.

The immediate focus for Dalal Street, is primarily on crude oil, the US-Iran situation, foreign fund flows, the rupee and global interest-rate expectations. Today’s early gains show that investors are willing to buy on declines, but the market is unlikely to find a clear direction until geopolitical risks and oil prices become more predictable.

Investors are likely to remain cautious through the week as global and domestic factors continue to shape market sentiment. Earnings updates, institutional fund flows and movements in the rupee could also influence trading patterns. While easing crude prices may offer some support, any escalation in US-Iran tensions could quickly revive concerns over inflation and energy costs. For now, traders are expected to remain selective, favouring stocks with stronger fundamentals.