Nifty rises 0.35% as IT stocks lead Friday rebound; oil and Fed cues cloud Monday open

Indian equities ended Friday higher after a two-session decline, with the advance concentrated in large technology companies rather than spread evenly across the market. The immediate trigger cited by market reports was Nvidia's upbeat quarterly result, which renewed optimism around artificial-intelligence spending and supported Indian IT exporters.

TCS was the strongest large-cap contributor, gaining 4.16%, while Tech Mahindra rose 3.53%, Infosys 2.99%, HCL Technologies 2.66% and Wipro 2.58%. The reported market interpretation was that stronger global technology sentiment could support demand for Indian information-technology services. That remains a sentiment channel rather than evidence of a change in the companies' own guidance.

The broader session was less decisive. ICICI Bank, Shriram Finance, ITC, UltraTech Cement and Asian Paints were among the reported laggards. Participants linked the weakness in financial and consumption-facing names to cautious positioning, while reports also cited concerns about sugar prices and their potential effect on FMCG input costs. No company-specific reason was provided in the available material for each of those declines.

Information technology was the clearest sectoral driver after the Nvidia result. Pharma and healthcare also attracted buying, but the available reports do not identify a single sector-wide catalyst or quantify a change in earnings expectations. The move therefore appears to have reflected a combination of defensive interest and stock-specific positioning, rather than a documented policy or earnings surprise.

Banks were broadly subdued despite the RBI's liquidity operation planned for Monday. The reported resignation decision by HDFC Bank's chief executive adds a company-specific management transition to the sector's watch list, although it was not identified as the reason for Friday's move in the available material.

The pressure in FMCG and retail, cement and materials, and NBFC and insurance names was consistent with a session in which traders favoured export-oriented technology and selected healthcare shares. That is an interpretation of the sector rotation; the material does not establish a common fundamental cause across all the lagging groups.

The Reserve Bank of India is scheduled to conduct a Rs 6 lakh crore variable-rate reverse-repo auction on August 31 to absorb surplus system liquidity. The Economic Times reported that banking-system liquidity averaged Rs 3.41 lakh crore in August and that the weighted-average call rate was below the repo rate because of the excess liquidity.

The RBI's August Bulletin described domestic demand, manufacturing and services activity, credit growth and investment as resilient. Separately, the government reported that foreign-exchange reserves rose to $729.3 billion in the week ended August 21, helped by inflows through the central bank's foreign-currency swap window. These developments strengthen the external and liquidity backdrop, but the higher longer-term bond yield shows that markets remain attentive to inflation and future rate risks.

India's April-June gross domestic product data are due on Monday evening, according to market reports. No CPI, IIP, GST, trade or PMI result for India was available in the material reviewed for this report. The GDP release is therefore the principal domestic macro event identified for the session.

The overseas setup was less supportive for Monday. US equities ended lower after Federal Reserve Chair Kevin Warsh's comments prompted traders to raise the implied probability of a September rate increase. Treasury yields remained elevated, while Asian shares also traded lower as fresh US-Iran fighting lifted oil prices.

For India, the combination matters through several channels. Higher crude raises the sensitivity of the rupee, inflation expectations and the trade balance, while firmer US rate expectations can keep global capital selective. The rupee was expected to open weaker after ending Friday at 95.3775 per dollar, according to Reuters.

Foreign institutional investors were provisional net sellers of Rs 5,039.80 crore in Indian equities on August 28, while domestic institutions were provisional net buyers of Rs 5,183.93 crore. The figures indicate that domestic buying offset the foreign outflow in that session, but they do not by themselves establish a durable change in the foreign-flow trend.

The immediate corporate watch list includes HDFC Bank's chief-executive transition. Sashidhar Jagdishan will not seek reappointment and is due to retire on October 26, 2026; the bank's board said it would accelerate the process of selecting and appointing a successor. The available material does not provide a market consensus for the successor or quantify the expected financial effect.

Several company-specific announcements are also in focus. Avantel received a Rs 117.88-crore DRDO order, Ola Electric received approval for a Rs 95.81-crore production-linked incentive payment, and Sterlite Technologies signed a long-term contract worth $288 million with a hyperscaler. NBCC entered into an agreement with NHPC to execute infrastructure projects, but no order value was provided.

Aurobindo Pharma said a US FDA inspection of its subsidiary Apitoria Pharma's Unit-VI had concluded with three observations. The available report described them as procedural, but it did not provide a prior market expectation or an earnings estimate against which the development can be assessed. Results due on Monday include LEAP India, Milky Mist Dairy Food, Setco Automotive, Cressanda Railway Solutions, Dachepalli Publishers and Standard Surfactants.

Primary-market activity is heavy at the start of the week. Purple Style Labs, which operates Pernia's Pop-Up Shop, is scheduled to launch its Rs 680-crore fresh issue on August 31. Ashutosh Fibre, Shanti Inorganics and Phychem Technologies are also scheduled to open their SME issues.

Lumino Industries' Rs 700-crore issue is due to close on August 31. ESDS Software Solution's Rs 720-crore issue and Priority Jewels' Rs 91.5-crore issue are scheduled to remain open until September 1. Augmont Enterprises is scheduled to begin trading on August 31 after its IPO, which comprised a Rs 620-crore fresh issue and a Rs 205-crore offer for sale.

No verified block or bulk deal was available in the material reviewed. The day's likely market focus is therefore split between the global risk-off cue, the domestic GDP release due later, HDFC Bank's succession process and the unusually busy IPO and listing calendar.