The Economic Times

Stock markets opened with caution on Monday as investors considered renewed US-Iran tensions. The Dow Jones Industrial Average saw a slight decrease at the opening bell. Meanwhile, the S&P 500 experienced a modest rise in early trading. The Nasdaq Composite also climbed higher during the opening session. A strong revenue forecast from AI lab Anthropic provided some support for tech stocks.

Michael Burry revived his AI bubble warnings after a report highlighted roughly $3 trillion in disclosed commitments by technology giants for AI infrastructure. He argued these off-balance-sheet obligations could signal excessive investment, echoing concerns over stretched valuations and market exuberance.

Puravankara posted impressive Q1 FY27 results with a remarkable twenty-eight percent rise in pre-sales. Year-on-year, total revenue soared sixty-three percent, hitting eight hundred seventy-seven crore. Profit after tax rebounded to a positive figure, showcasing a strong turnaround from the previous year. The company successfully delivered seven hundred forty-five homes, sustaining its operational pace, while significantly boosting its Bengaluru land transactions with an added GDV of five thousa

India's Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) could expand two to three times from the existing assets under management (AUM) by 2030, supported by low penetration across several infrastructure segments, according to an Ionic Wealth chartbook.

The Indian government bond market experienced a dip in demand on Monday, leading to higher yields. In an unexpected move, the central bank accelerated the deadline for its diaspora deposit swap program. This decision came after robust foreign deposit inflows from banks. As policymakers weighed domestic liquidity impacts and borrowing costs, the early deadline disappointed investors, shifting their outlook on upcoming surpluses.

Four BSE Midcap stocksKEI Industries, LG Electronics India, Ajanta Pharma and Ipca Laboratorieshit fresh 52-week highs despite the Sensex falling 281 points. Ajanta Pharma led gains with a 98% monthly surge, while KEI Industries rose 20%, highlighting pockets of market strength.

Indias six listed REITs distributed Rs 3,136 crore to more than 4.85 lakh unitholders in Q1 FY27, reflecting strong rental collections and stable cash flows. Their combined AUM exceeded Rs 3.17 lakh crore, while market capitalisation crossed Rs 2.17 lakh crore.

Morgan Stanley retained its positive view on Reliance Industries after its partnership with Rolls-Royce to develop indigenous combat engines for Indias AMCA programme. The brokerage said the move reinforces Reliances evolving strategy.

Sebi Chairman Tuhin Kanta Pandey said cybersecurity must evolve into board-level cyber resilience, requiring continuous vulnerability management, tested recovery plans and risk-based patching. He also urged financial institutions to begin migrating toward post-quantum cryptography as quantum threats challenge existing security systems.

India's unemployment rate fell to 5.1% in July 2026, showing positive labor market trends. Both labor force participation and worker population ratios saw notable improvements across the nation. Rural unemployment decreased significantly, while urban rates remained relatively stable during this period. Male unemployment declined month-on-month and year-on-year, indicating positive shifts. Female labor force participation and worker population ratios also experienced a substantial increase.

The Indian rupee slipped against the US dollar on Monday as the central bank's surprise move to shorten its forex swap timeframe rattled the market. Importer demand for dollars continued to exert downward pressure on the rupee. In response to the announcement, dollar-rupee forward premiums spiked significantly, while analysts remain optimistic about potential inflows in light of the revised swap conditions.

Tempsens Instruments is preparing for its IPO launch on August 20, targeting an impressive Rs 650 crore in funding. Of this, Rs 18 crore will be allocated for capital investments while Rs 55 crore is designated for settling debts. Recognized as the largest producer of temperature sensors and specialized cables in India, Tempsens has shown substantial revenue and profit increases.

Market veteran Raamdeo Agrawal has called Zeptos IPO plans premature after the quick-commerce firm deferred its proposed listing amid valuation concerns. Zepto is reportedly discussing a valuation of $2.5-3 billion, sharply below its $7 billion private valuation. Agrawal said companies should tap public markets only when profitable or close to profitability, as investors focus heavily on earnings.

Bitcoin hovered near $63,000 as investors awaited Federal Reserve guidance, with weak ETF flows, geopolitical tensions and elevated oil prices pressuring risk appetite. Analysts highlighted $62,300 support and $63,300-$64,000 resistance, while Ethereum and major altcoins showed mixed performance amid broader consolidation.

Euro zone bond yields stayed near 15-year highs as Middle East conflict-driven energy inflation raised expectations for ECB rate hikes. Germanys 10-year Bund yield held around 3.20%, while widening Italy-Germany spreads highlighted growing geopolitical, inflation and fiscal risks across the region.

European shares edged higher as gains in basic resources and technology stocks offset weakness in defensive sectors. A softer dollar, weaker US economic data and firmer gold prices supported sentiment, while investors continued to monitor Federal Reserve policy expectations, commodity prices and geopolitical risks.

FIIs steadily increased holdings in several BSE 500 companies across three quarters, with select stocks delivering 50133% returns. Three multibaggers more than doubled investors wealth, highlighting strong institutional buying.

Indias six listed REITs distributed Rs 3,136 crore to over 4.85 lakh unitholders in Q1 FY27, reflecting strong rental collections, occupancy and stable cash flows. With Rs 3.17 lakh crore in assets, the sector continues expanding, offering investors regulated access to income-generating commercial real estate and strengthening its role in Indias capital markets.

BSE Clearing has launched three-working-day securities lending and borrowing (SLB) contracts to give market participants greater flexibility for short-term borrowing and delivery needs. The new contracts, effective August 17, will have a T+1 first leg and T+3 reverse leg, and initially cover F&O securities under the D-series prefix.

Global markets enter a quieter summer week with food inflation, US consumer spending, Japans growth outlook, gold and UK inflation in focus. Investors will assess whether rising energy and food costs prove temporary or complicate central banks interest-rate decisions.

There are currently too many variables that can move the markets in either direction. Oil prices may have settled into a range for now, but there is still no clarity on how the Gulf situation will develop. If uncertainty continues, oil prices may remain elevated. In such a scenario, it is probably best to be cautious; but be nimble enough to respond as things change. Our selected stocks for today depict a strong upward trajectory in their overall average score which is based on five key pillars:

Emerging markets are seeing renewed investor interest despite geopolitical tensions, trade risks and AI-driven volatility, with debt attracting strong foreign inflows as deeper domestic capital markets and improved policymaking strengthen resilience. Equities, however, continue to face pressure, prompting investors to adopt a more selective approach.

BSE shares fell sharply on Monday after Jefferies downgraded the stock and cut its target price to Rs 2,940, citing risks from proprietary trading activity, STT changes, RBI bank guarantee norms and the Closing Auction Session. The brokerage also lowered earnings estimates, despite BSEs strong Q1FY27 profit and revenue growth.

The Reserve Bank of India shortened its zero-cost FX swap facility for banks. This action followed substantial foreign deposit inflows from non-resident Indians. Policymakers also considered domestic liquidity effects and fundraising costs. The overseas fundraising supported the rupee, which had reached record lows earlier. These measures have bolstered foreign exchange reserves significantly.

Alibabas Q2 earnings will test whether its aggressive AI investments can drive sustainable growth and profits. Strong Qwen adoption and cloud growth support optimism, while falling profitability, heavy spending and legal risks could weigh on its stock and determine whether the recent rally has further upside.

The AI investment debate is shifting toward identifying sustainable winners as spending accelerates. Hyperscalers, semiconductor firms and neocloud providers remain key beneficiaries, but investors increasingly prioritise profitability, valuations and infrastructure control. As computing capacity expands, companies with strong balance sheets, customer relationships and diversified technology ecosystems may capture the biggest long-term gains.

Emerging Asian currencies gained on Monday as a weaker US dollar supported regional markets, with Taiwan and Thailand leading gains. Investors also assessed Japans slower growth, Malaysias inflation data and upcoming Bank Indonesia policy decision, while Middle East tensions and shifting US rate expectations remained key factors for regional markets.

Wall Street is currently assessing Anthropic's valuation in light of its anticipated revenue growth for the upcoming IPO. The AI company forecasts remarkable revenue increases by 2028, which is pivotal for investor confidence. Revenue multiples derived from these forward-looking projections are being employed, with comparable companies such as Palantir and SpaceX serving as benchmarks. This strategy underscores the AI firm's rapid expansion and significant infrastructure investments.

Molbio Diagnostics made a strong debut, beating grey market expectations. Experts remain positive on the companys molecular diagnostics leadership, expansion strategy and industry prospects, though they advise caution after the sharp initial gains and suggest a Rs 900 stop-loss.

Sebi Chairman Tuhin Kanta Pandey says the closing auction session (CAS) is here to stay, even as the regulator reviews concerns over its implementation. Launched on August 3, CAS has triggered sharp moves in the final minutes of trading and raised concerns over legacy systems, order placement and derivative positions. While Sebi has found no evidence of manipulation, Bernstein expects near-term pressure on index-options volumes.

Dhoot Transmission made a strong debut, with shares listing at a 38% premium to the 871 IPO price, comfortably beating the ~30% gain indicated by its grey market premium. Analysts remain positive on its long-term prospects, citing strong revenue growth, its established wiring harness business and rising EV exposure.

Schneider Electric Infrastructure shares fell sharply on Monday after Q1FY27 net profit plunged 70% YoY to Rs 12 crore despite a 5% rise in revenue. EBIT also declined sharply, while record quarterly order intake of Rs 915 crore and a 32.7% rise in order backlog offered some comfort.

Japans second-quarter economic growth missed expectations as weaker household consumption and business investment offset resilient exports. Despite the softer GDP reading, economists expect the Bank of Japan to retain the option of another rate hike, although persistent weakness in domestic demand could encourage a more cautious approach.

Sugar stocks rallied up to 7% as global sugar prices climbed to multi-month highs, with raw sugar touching 16.6 cents per pound and white sugar hitting a 15-month peak. Domestic prices have surged nearly 10% in a month to around Rs 5,000-5,090 per quintal in Mumbai. Deficient rainfall and expectations of strong festival demand are further supporting the bullish outlook for sugar companies.

Uflex shares rallied after the company reported a 630% YoY jump in Q1 FY27 net profit to Rs 423.3 crore. Revenue grew 38% to Rs 5,366 crore, while EBITDA surged 92% to Rs 919.8 crore. The EBITDA margin expanded to 17%, marking the companys highest level in 21 quarters.

Zaggle Prepaid Ocean Services shares hit the lower circuit after the company reported a sharp year-on-year decline in Q1FY27 profit, despite strong revenue growth. Margin pressure from Dice acquisition-related expenses weighed on earnings, while the company continues to focus on integrating acquisitions, scaling AI and expanding its fintech offerings.

Puravankara shares rose sharply on Monday after Q1FY27 revenue jumped 63% YoY to Rs 877 crore, while PAT turned positive at Rs 25 crore and EBITDA margin expanded to 25%. Pre-sales rose 28% to Rs 1,439 crore, with collections up 40% YoY.

Chinese and Hong Kong equities advanced, led by technology and semiconductor stocks following strong corporate earnings, while consumer and liquor stocks weakened. Investors remained focused on key economic data for clues on domestic demand and the broader health of Chinas economy.

NMDC shares fell 4% despite a 2% YoY rise in Q1FY27 profit to Rs 2,007 crore, while revenue increased 2% to Rs 6,795 crore. Iron ore production jumped 26% to 151.17 lakh tonnes, but sales rose just 2% to 117.30 lakh tonnes. Ore transferred for pellet job work increased 46% to 8.19 lakh tonnes during the quarter.

Indian residents' outward remittances have significantly increased, reaching a record USD 31.73 billion by FY2023-24. Digital reforms and infrastructure upgrades have streamlined the process for investing abroad. Online Form A2 submissions and remote identification now allow faster transactions. Recent changes have removed value caps and widened permissible remittance purposes. These developments make global markets more accessible for millions of Indians.

PhysicsWallah shares gained sharply after the edtech company reported improved Q1FY27 performance, with revenue rising and losses narrowing year-on-year. Brokerage JM Financial viewed the quarter positively and maintained a bullish stance, citing strong online growth, improving profitability and growth prospects.

A Russian missile strike hit ArcelorMittal Kryvyi Rih in Ukraine, killing two people and injuring 14. The attack partially disrupted operations at the steel plant owned by billionaire Lakshmi Mittal. The strikes came as Ukraine launched a major drone attack on Russia.

Tiger Global reshuffled its tech portfolio in Q2, cutting stakes in Alphabet, Nvidia, Microsoft, Amazon, Meta, Broadcom and TSMC while exiting Netflix. The fund more than doubled its Intel holding and initiated positions in AMD and SpaceX, signalling a shift toward semiconductor exposure and emerging technology opportunities, according to filings.

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German companies sharply cut investments in the US in the first half of 2026, with direct investment falling nearly two-thirds from a year earlier amid uncertainty over tariffs, trade and US economic policy. While existing operations continue to reinvest profits, businesses appear increasingly cautious about committing fresh capital to new projects.

Japanese equities traded mostly lower as weaker-than-expected economic growth and elevated oil prices weighed on investor sentiment. Concerns over Middle East tensions, inflation and rising bond yields added to the pressure, while a weak market breadth reflected cautious investor sentiment. The Nikkei 225 and Topix both declined in early trading.

In a troubling trend, Nifty and Sensex slipped for a fifth day on Monday, as escalating oil prices and struggling IT stocks soured investor confidence. The broader market followed suit, opening lower and reflecting the ongoing negative sentiment. Analysts predict a stagnant market until new, favorable catalysts surface, prompting investors to keep a close eye on global trends and economic data that could sway the market's direction.

Investors enter the week focused on interest rates, inflation and geopolitical risks, while strong corporate earnings support equities. The Federal Reserves Jackson Hole symposium and AI infrastructure spending remain key market catalysts. Robust earnings, positive guidance and Big Tech investment could offset macroeconomic concerns, though higher oil prices remain a potential threat.