Nifty IT hits 3-yr low, IPO funds crash 89%

The Nifty IT index fell to 26,299, its lowest since April 2023, dragging the sector 30% down YTD while the broader Nifty 50 slipped 9%. Analysts blame weak client spending and macro headwinds, but point to a $300‑400 bn AI‑led services market by 2030, hinting at selective buying on quality firms.

India’s mainboard IPO fundraising slumped 89% YoY to ₹3,777 crore in the June quarter, while offer‑for‑sale issuances surged to ₹16,568 crore, nearly double last year. The decline reflects fewer listings and valuation concerns, whereas the government’s PSU divestments are fueling OFS demand. Analysts say a revival hinges on broader market stability and upcoming large issuers.

Adani Ports and MSC Group's terminal arm TiL will invest $1.397bn for a 49% stake in Vizhinjam port, marking India's largest foreign private port investment. The deal funds a capacity boost to 5.7m TEUs by 2028, cementing Vizhinjam as a key transshipment hub on the Europe‑Middle East‑Far East route.

The RBI’s June 2026 Financial Stability Report found that 44 open‑ended debt mutual‑fund schemes, holding ₹3.18 lakh crore, breached prescribed liquidity thresholds in March. The regulator says the breaches have been or are being remedied, so there’s no immediate systemic risk.

The RBI’s latest Financial Stability Report shows gold loans have become the fastest‑growing retail credit segment, expanding at a 42.4% CAGR since March 2024, almost double the growth of all non‑housing retail loans. The boom, driven by higher gold prices, now accounts for about 5.8% of total outstanding loans, signalling rising consumer reliance on secured borrowing.

The RBI has identified emerging fault lines in India’s private credit ecosystem, noting a rise in defaults and redemption pressures from investors. While current stress levels aren’t deemed systemic, the central bank urges close monitoring to preempt broader financial instability.

Kotak Mahindra Bank will acquire Deutsche Bank's Indian retail, private banking and wealth management unit for about ₹282 crore. The deal adds roughly ₹29 trn in loans, ₹16 trn in deposits and ₹10.5 trn in AUM, expanding Kotak’s high‑net‑worth and SME franchise. Integration will bring 1,000 Deutsche Bank staff and 150,000 customers into Kotak’s ecosystem.

May 2026 saw Indian PE/VC capital fall to $2.1 bn across 76 deals, a 59 % YoY drop and the weakest month since Nov 2023. The slump reflects geopolitical tension and valuation gaps, while exits surged 162 % and fundraises hit a record $11.3 bn, hinting at a shift toward later‑stage deals.

State refiners plan to cut long‑term contracts for Middle‑East oil and shift buying to spot deals and diversified sources such as Guyana, Brazil and the United States. The pivot follows the Iran‑Israel conflict that exposed supply gaps, higher prices and losses for Indian processors.