Local equities are gearing up for a bright start, lifted by positive signals from India-US trade talks. While Asian markets are pausing for breath after a nine-day rally, India might finally get a chance to catch up, having trailed regional benchmarks this year. Adding to the buzz, all eyes are on Urban Co.’s market debut — the year’s most-subscribed IPO — which could add a bit more momentum to sentiment.
Traders eye big listing-day gains from Urban
Urban Co.’s trading debut is drawing intense attention after its IPO was subscribed 100 times, with both retail and institutional investors clamoring for shares. Traders expect follow-on buying from those who were left out during bidding, and a bumper listing will rub off on other Indian startups planning to go public. Market veterans are drawing parallels with the excitement around startup IPOs in 2021 — though seasoned investors will remember how quickly the initial hype faded when the broader market corrected.
Bank shares extend winning run on earnings-rebound hopes
The Nifty Bank index notched a 10th straight gain Tuesday — its longest streak in over eight years — despite the industry grappling with sluggish credit growth and persistent margin pressure. Motilal Oswal analysts say the December quarter could mark a turning point as deposit costs ease and the phased cut in cash reserve ratio improves liquidity. Early signs of reduced stress in unsecured retail lending and moderating credit growth further strengthen a bullish case for lenders.
Record flows to pump up India mutual funds, Jio-BlackRock says
Jio BlackRock expects assets managed by India’s near-$900 billion mutual fund industry to triple in seven years as digital platforms accelerate participation by domestic investors in financial markets. The venture, backed by Mukesh Ambani and BlackRock, is rolling out passive funds, as well as active ones that use hundreds of indicators and alternative data, betting systematic strategies will gain ground in a maturing market. CEO Sid Swaminathan said they are considering new funds that will rotate across sectors based on market conditions, and another one actively allocating between different asset classes.
Analysts actions:
An equal-weight version of the NSE Nifty 50 Index is set to outperform the cap-weighted Indian benchmark for a sixth straight year. The gauge is up almost 10% this year and outpacing by over three percentage points. This has been the case in recent years, as top players such as Reliance Industries and major IT stocks with sizeable weights in the Nifty have struggled to deliver returns. The contrast highlights the steady advantage of equal-weight strategies.
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Published on September 17, 2025
