Financial Summary: Thursday, August 27, 2026

Sensex plunges 539 points, Nifty closes below 24,100 on expiry

Indian benchmark indices declined, with the Sensex closing at 76,933.59, down 0.70% and Nifty 50 settling at 24,090.85, off 116 points or 0.48%. The sharp intraday drop during the Closing Auction Session contributed to nearly 40 points of the losses, amid questions over the new CAS system's effectiveness under stress.

Sensex slips 124 points on expiry day, Nifty holds 24,200

Indian benchmark indices declined, with the S&P BSE Sensex down 258.39 points or 0.33%, and the Nifty 50 index losing 55.80 points or 0.24%. Sectoral weakness was particularly pronounced in PSU bank shares following two consecutive trading sessions of decline.

IPO boom returns as 239 firms queue, July-August drive 69% of FY26 fundraising

The IPO market is surging with 239 companies queued to list, and July-August alone accounted for 69% of FY26 fundraising. As of August 25, 40 out of 53 listings in 2026 trade above their IPO price, with three companies doubling investors' money.

Bombay Burmah Trading surges 14% as SC recalls Rs 4,655 crore lease order

Shares of Bombay Burmah Trading Corporation jumped as much as 14-15% after the Supreme Court recalled its earlier observation that had flagged a Rs 4,655 crore lease liability against the company. The stock led gainers in the 'A' group with heavy volumes, as investors cheered the removal of the overhang. The company's legal position has strengthened, but the underlying lease dispute may still see further proceedings.

Prudential Corp sells 2% stake in ICICI Pru AMC via block deal, shares fall 5%

Prudential Corporation has sold a 2% stake in ICICI Prudential AMC through a block deal, with around 1 crore shares changing hands. The sale has driven the stock down over 5% as the promoter trims its holding, though the move was widely anticipated.

Tata Power loses $490M arbitration appeal, shares slide 4%

Tata Power has lost its $490 million arbitration challenge in a Singapore court, leading to a 4% drop in its share price. The company had previously announced its intention to appeal the original Kleros arbitration award, but the latest ruling appears to have upheld the decision against it. The case involves a dispute over a power purchase agreement, and the financial impact is significant for the company.

RBI steps up rupee defense as reserves hit record, rupee opens at 95.44

The Reserve Bank of India has intensified its intervention in the forex market, supported by record-high foreign exchange reserves, as the rupee opened weaker at 95.44 against the US dollar. However, the currency quickly recovered to a two-week high, trading at 95.40 in early trade, indicating that RBI's measures are providing some stability.

Maharashtra leads India in PV and CV sales for Q1 FY27

SIAM data for the first quarter of fiscal year 2027 shows Maharashtra as the top state for both passenger vehicle (PV) and commercial vehicle (CV) sales, according to two separate reports released on August 27. The state's leading position underscores its strong automotive market demand, driven by its large economy and industrial activity. This trend is consistent with previous quarters, where Maharashtra has been a key contributor to national vehicle sales.

S&P keeps India at BBB, flags fiscal consolidation as key

S&P Global Ratings has affirmed India's sovereign rating at 'BBB' with a stable outlook, citing resilient growth and external buffers. The agency emphasized that continued fiscal consolidation is crucial for a future upgrade, while risks from high debt and deficits remain. The stable outlook reflects balanced risks to growth and fiscal metrics over the next two years.

Nvidia Jumps 8% on Strong AI Outlook, Hugging Face Deal

Nvidia shares surged nearly 8% after the company delivered a bullish quarterly report and raised its AI outlook, with a new partnership with Hugging Face further boosting sentiment. The rally lifted tech stocks and Nasdaq futures, with analysts and investors citing strong demand for AI infrastructure. The positive momentum also extended to other tech names like Salesforce and CrowdStrike, which reported solid earnings.

Nvidia beats Q2 estimates, shares jump 4% on AI demand

Nvidia's better-than-expected Q2 earnings have reignited confidence in the AI trade, lifting Asian stocks for a third day with the Kospi jumping up to 3%. The company is reportedly in talks to acquire Hugging Face for $12.9 billion, signaling an aggressive AI deal spree. However, Nvidia has flagged two key risks—potential supply constraints and export restrictions—that investors should monitor despite the strong results.

Nvidia to Acquire Hugging Face for $12.9 Billion

Nvidia has agreed to acquire AI startup Hugging Face for $12.9 billion, according to reports, while simultaneously posting blockbuster quarterly earnings and a strong sales forecast that sent shares up 6% in premarket trading. CEO Jensen Huang defended the company's growing financial support for the AI ecosystem, calling the risk low. The acquisition and earnings together signal Nvidia's aggressive expansion in AI infrastructure and platforms.