Aureva Capital - Weekly Newsletter - 6th Sep 2026
India's Q1 FY27 GDP surprised on the upside at 7.8%, yet domestic markets slipped for a fourth consecutive week. Aureva Capital analyzes how surging global bond yields and escalating West Asia tensions are impacting Nifty, Sensex, and midcaps.
MARKET UPDATE
Week ended 04 September 2026
week as bond yields surge and West Asia tensions flare, even as India's Q1 FY27
GDP beats estimates at 7.8%
Here is your
weekly market update — a snapshot of where major indices, commodities and
currencies stand, followed by the key developments across the economy, global
markets, corporate activity and the week ahead.
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1a. Indices Performance
Indian
benchmark indices ended the week lower, weighed down by a global bond-yield
spike and renewed tensions in West Asia. The Nifty and Sensex each fell about
1% week-on-week, while the Midcap index underperformed with a 1.4% decline; the
Smallcap index was flat. Sectorally, Oil & Gas and Realty were the only
gainers, while Auto, Consumer Durables and Capital Goods led the declines.
Note: 3-month,
6-month and 12-month return series were not disclosed for the above domestic
broad/sectoral indices in this week's source report; only the 1-week change was
available.
1b. Global Market Update
Global equities
were mixed for the week. Emerging markets such as Brazil's Bovespa and
Singapore's Straits Times led gains, while Japan's Nikkei and Germany's DAX
lagged. Over a 12-month horizon, Korea's KOSPI and Japan's Nikkei stand out
with exceptionally strong returns.
1c. Global Commodity
Update
Brent crude
extended its rally, up 7% for the week amid renewed conflict in West Asia,
while gold and silver posted modest weekly gains even after sharp corrections
over six months. Industrial metals were mixed, with copper and zinc higher on a
weaker dollar.
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Commodities
Gold was on
track for a modest weekly gain, helped by softer inflation expectations and
reduced odds of a September Fed rate hike following dovish comments from a Fed
governor; markets are pricing roughly a 50% chance of a hike. Upcoming US
payrolls and August CPI/PPI data will be the next key triggers — softer prints
should support gold, while continued central-bank buying should cushion any
weakness. Brent crude was set for its strongest weekly gain since July, up
around 7% (WTI up nearly 10%), as renewed hostilities between the US and Iran
reignited supply concerns; prices are likely to stay volatile, with further
escalation posing upside risk even as OPEC+ output remains unchanged. Copper
firmed as a weaker dollar and fading rate-hike expectations lifted sentiment;
supply tightness should keep prices supported, though slowing US factory
activity and rising input costs could cap demand.
Currencies
The US dollar
was headed for a 0.7% weekly decline as dovish commentary trimmed the odds of a
September Fed hike to around 50%; upcoming payrolls and CPI data will shape the
path into the September FOMC meeting. The Indian rupee, meanwhile, rose over 1%
for the week, supported by stronger-than-expected FCNR(B) inflows that have
boosted the RBI's intervention capacity. Elevated crude prices and the renewed
US–Iran stand-off remain the key medium-term risks to the currency.
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A round-up of
the top corporate and stock-specific developments from the Indian markets this
week:
• HDFC Bank: MD & CEO Sashidhar Jagdishan
has decided not to seek reappointment, adding a leadership overhang for the
stock even as the search for a successor gets underway.
• Reliance Jio Platforms: received a SEBI
observation letter on the DRHP filed for its proposed IPO, and is reportedly
set to finalise listing dates and initiate investor roadshows in the coming
weeks.
• E2E Networks: secured a ₹1,000 crore deal to
supply NVIDIA Blackwell Cloud GPUs to a sovereign AI firm based in India.
• PVR INOX: the board approved a share buyback
of up to ₹300 crore via the tender-offer route at ₹1,450 per share.
• Happiest Minds Technologies: promoter Ashok
Soota has agreed to sell a 22.1% stake to ITC Infotech for ₹1,329.7 crore, with
a scheme of amalgamation to follow subject to approvals.
• Kotak Mahindra Bank: has recommended two
internal candidates — Anup Saha and Paritosh Kashyap — to the RBI to succeed
CEO Ashok Vaswani when his term ends next year.
• Reliance Consumer Products: entered the
ice-cream category with the launch of "Bombay Creamery," positioned
around affordable, real-dairy-cream products.
• Adani Green Energy: commissioned a 139 MW
solar project at Khavda, Gujarat, taking its operational renewable capacity
past 20 GW.
• Tata Motors: confirmed it has secured all
necessary regulatory approvals for its proposed acquisition of Italian
commercial-vehicle maker Iveco Group.
• Sun Pharmaceutical: agreed to offer its
prescription and future innovative drugs in the US at prices aligned with the
lowest paid by other developed nations, under a US healthcare-affordability
initiative.
• Swiggy: is set to be deleted from MSCI's
Global Standard Indexes after the company came under foreign-ownership-limit
restrictions, adding a technical overhang to the stock.
• Hexaware Technologies: CEO Srikrishna
Ramakarthikeyan has resigned; the board has appointed Vivek Jetley as CEO with
effect from October 28, 2026.
• Power Grid Corporation: received a Letter of
Intent worth ₹1,152.49 crore to build a transmission system for a
renewable-energy evacuation project in Gujarat.
• Sterlite Technologies: the board approved a
₹3,000 crore capex to expand optical-fibre-cable capacity by 50% by FY29.
• EPL Ltd: promoter Epsilon Bidco
(Blackstone-owned) is likely to sell up to a 26.38% stake via a block deal
worth approximately ₹1,985 crore.
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Key
developments from global markets this week:
• Meta: agreed to a settlement of up to $16.7
billion over allegations that Facebook and Instagram harmed teenagers' mental
health. Roughly $12.7 billion will go to participating US states over ten years
for youth mental-health programmes, while a further $5.3 billion is contingent
on rival platforms adopting similar teen-safety limits. Notably, Meta's stock
rose on the news, as investors appeared to value the certainty of a capped,
scheduled payment over an open-ended legal risk; the company also announced a series
of product changes, including screen-time caps and quiet hours for teen
accounts.
• Nvidia: reported quarterly revenue of $96.2
billion, up 106% year-on-year, and guided to roughly $108 billion for the
current quarter. The stock jumped nearly 9% in a single session — adding about
$435 billion in market value, one of the largest one-day gains on record —
before giving back roughly half of that gain the following day amid concerns
over rising memory-chip costs, which management said could compress gross
margins from 75% to the 71–72% range over the next two quarters.
• Salesforce: beat estimates with adjusted
earnings of $5.90 per share against $3.27 expected, sending the stock up about
22% — its second-best trading day on record. Of that figure, roughly $2.53 per
share came from an unrealised gain on Salesforce's investment stake in
Anthropic rather than from software sales; excluding this, earnings grew a
still-healthy ~16% year-on-year. The company also announced a deeper
partnership with Anthropic, integrating Claude into its Agentforce and CRM
offerings.
• Amazon: quietly raised prices on several
devices, including the Echo Dot (up from $49.99 to $79.99), citing sharply
higher memory-chip costs — the same industry-wide shortage benefiting AI-chip
makers like Nvidia.
• Snap: shares fell over 8% after Pennsylvania's
Attorney General sued the company over teen-safety design features such as
disappearing messages and autoplay, adding to broader regulatory scrutiny of
social-media platforms.
• Intuit: fell nearly 10% after guiding TurboTax
unit growth down to 2–3%, reviving investor concerns about AI-driven disruption
to traditional software business models — commentary that was notably countered
by Salesforce's results and management commentary the same week.
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Week
This week primary-market activity is set to dominate: eleven
mainboard IPOs, with a cumulative issue size of approximately ₹7,055 crore, are
scheduled to launch next week, alongside inflation prints from China and the US
and the ECB's monetary policy decision.
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Week
IND: India |
USA: United States of America | CNY/China: China | GBP/UK: United Kingdom |
EUR/EU: European Union | JPY: Japan
For information and education only; not investment, tax, or
legal advice or an offer to buy or sell any security. Mutual fund and
securities investments are subject to market risks; past performance does not
guarantee future results.