- By Aditya Pratap Singh
- Mon, 07 Sep 2026 10:03 AM (IST)
- Source:JND
The domestic stock market started the week on a negative note as the key equity indices traded lower in early trading on Monday, September 7. AT around 9:43 AM, Sensex, the 30-share index of BSE, was trading 186.54 points or 0.24 per cent lower at 76,328.89, while Nifty50, the NSE's 50-share index, was quoted at 23,835.30, down 62.75 points or 0.26 per cent.
Earlier, in the opening trade, the Sensex fell 264 points to a low of 76,251.46 as compared to the last close of 76,515.43.
Why Stock Market Is Down Despite Positive GDP Growth Data
Meanwhile, the key question is, 'Why is the market falling for the past few sessions' despite positive news on economic growth--India's GDP grew at 7.8 per cent in the first quarter of the current financial year.
If analysts are to be believed, there are two key factors weighing in on the domestic stock market--worsening tension in the Middle East, a boom in the IPO market.
“The market has been drifting down for four weeks now. A relevant question is: why this downtrend despite positive fundamental news regarding the economy and corporate earnings? One explanation is that worsening tensions in the Middle East and the consequent elevated crude prices are weighing on the market," said Dr V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
IPO Boom: A Key Factor Behind Subdued Momentum
According to Vijayakumar, the ongoing IPO boom and the spate of big IPOs are expected to hit the market this month. This week itself, eleven mainboard IPOs are hitting the market.
"The mega IPOs from NSE and Jio are also expected this month. These mega IPOs are expected to absorb humongous liquidity from the market. Investors are looking for listing gains from these IPOs. In brief, the present focus is on the IPO market rather than the secondary market. This is likely to continue throughout September," the analyst highlighted.
Meanwhile, the better-than-expected jobs data in the U.S. has raised the prospects of a rate hike by the Fed in September--this will weigh on equity and bond markets globally, he noted.
Top Losers And Gainers
From the 30-share Sensex basket, Infosys, HCL Tech, Tech Mahindra, Tata Steel, Kotak Bank, SBI, TCS, Ultratech Cement, Hindustan Unilever and Titan were top losers in early trade. BEL, L&T, Maruti Suzuki, ICICI Bank, and Bharti Airtel were trading in the green.
Category | Stocks |
|---|---|
Top Losers | Infosys, HCL Tech, Tech Mahindra, Tata Steel, Kotak Bank, SBI, TCS, Ultratech Cement, Hindustan Unilever, Titan |
Top Gainers | BEL, L&T, Maruti Suzuki, ICICI Bank, Bharti Airtel |
Also Read: NSE IPO Update: Market Regulator SEBI Clears Way For Rs 30,000 Crore Issue; When Will IPO Open?
Stock Market Today: FAQs
- Why is the Indian stock market falling despite positive GDP growth? According to analysts, the downtrend is driven by two main factors-- worsening tensions in the Middle East and a boom in IPOs. The Middle East tensions have led to higher crude oil prices, and a significant boom in the IPO market that is absorbing liquidity from the secondary market.
- How are IPOs affecting current market momentum? The current surge in IPO activity, with eleven mainboard IPOs hitting the market this week and mega IPOs, including Reliance Jio and NSE, expected later this month, is absorbing substantial liquidity. Investors are prioritising potential listing gains from these new offerings over secondary market investments.
- What is the outlook for the stock market in September? Analysts suggest that the current focus on the IPO market is likely to continue throughout September. Additionally, U.S. jobs data has increased the possibility of a Federal Reserve rate hike in September, which is expected to weigh on equity and bond markets globally.