Indian Equities Trade Cautiously on June 29th; Persistent Systems Plunges on Acquisition News
Renewed geopolitical tensions and an uptick in crude oil prices tempered investor sentiment, with focus now shifting to upcoming macro data.
The story
Indian equity markets opened on a mixed note on Monday, June 29th, following a three-day holiday period. Benchmark indices traded largely rangebound through the day, with the Sensex down 203.87 points, or 0.26%, at 76,896.60 and the Nifty 50 slipping 46.85 points, or 0.19%, to trade at 24,009.15 by afternoon. Global cues, particularly renewed geopolitical tensions between the US and Iran and fluctuating crude oil prices around $72-75 per barrel, influenced investor sentiment.
Sectoral performance was divergent. The Nifty Pharma index surged over 1.73%, emerging as a top gainer, with Dr Reddy's Laboratories seeing notable advances. Conversely, IT stocks faced pressure, with the Nifty IT index declining 0.96%. Persistent Systems notably plunged 8.69% following news of its EUR 1.4 billion acquisition of Nagarro. Kotak Mahindra Bank also saw a decline of 2.3% amid reports of its CEO transition. While foreign institutional investor (FII) selling has reportedly eased, specific net flow data for the current trading sessions was not immediately available.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 24,009.15 | -46.85 (-0.19%) |
| Sensex | 76,896.60 | -203.87 (-0.26%) |
| Bank Nifty | 58,210.00 | +33 (0.06%) |
| USD/INR | 94.3500 | -0.1000 (-0.11%) |
| India 10Y Yield | 6.783% | +0.009 (+0.13%) |
| India VIX | 13.91 | +6.57% |
IPOs & the primary market
India's primary market remains active, with several IPOs opening and closing. On June 29th, Aastha Spintex's mainboard IPO opened for subscription, alongside SME issues from Twinkle Papers and Adon Agro Commodities.
The mainboard IPO for CSM Technologies also concluded its subscription period on June 29th. Looking ahead, listings are anticipated for Advit Jewels, Waterways Leisure Tourism (Cordelia Cruises), Riyaasat Lifestyle, Shreedhar Spinners, and Jivial Industries on July 1st, and CSM Technologies on July 2nd. While June 2026 saw strong IPO activity, particularly in the SME segment, investors continue to be selective, with valuation concerns influencing participation.
Valuation watch — India & global
Indian equities have maintained a positive structure, extending their winning streak for a third consecutive week, with the Nifty comfortably trading above key moving averages. The India VIX, a gauge of market volatility, remains near multi-week lows at 13.44, suggesting a degree of institutional confidence.
However, global signals present a mixed picture. While easing crude oil prices have supported market sentiment, concerns about valuation persist, leading investors to remain selective.
Internationally, major technology-focused indices like the Nasdaq saw significant declines last week, with sell-offs also observed in AI and tech-related companies across South Korea, Taiwan, China, and Japan. European markets also closed lower on June 26th, indicating broader global cautiousness.
Monsoon watch
The southwest monsoon's progress remains sluggish, with cumulative rainfall over 41% below the long-period average (LPA) from June 1st to June 25th. This significant deficit has slowed kharif crop sowing for paddy, pulses, and cotton.
As of June 24th, most states recorded rainfall deficiencies ranging from 20% to 81%, though Rajasthan saw a 20% excess. Reservoir levels have dropped sharply, making the agricultural sector heavily reliant on July's monsoon recovery.
The India Meteorological Department (IMD) forecasts seasonal rainfall at 90% of the LPA, with an 84% probability of below-normal or deficient rainfall due to developing El Niño conditions. Early soil moisture deficits have emerged in several regions, further impacting sowing activities.
What we'll be watching
- India's industrial production and manufacturing output data for May (June 29).
- India's foreign debt data for Q1 (June 29).
- India's fiscal deficit data for May and trade balance (June 30).
- India's manufacturing Purchasing Manager's Index (PMI) for June (July 1).
- Corporate India's April-June quarter earnings season begins in mid-July, led by IT giants.
- Upcoming IPO listings for Advit Jewels, Waterways Leisure Tourism, and others on July 1st and 2nd.
Reporting + analyst voices: grounded via Google Search at publish time.