Street Signs: India and US markets align, IPO engine revs in silence, more

Sync or swim: India and US markets dive into alignment

 

Historically, Indian and US markets have moved in tandem, but their trajectories have diverged since October. After peaking at 26,277 in September, the Nifty 50 fell 17 per cent to 21,744 by April 7. Meanwhile, US markets held steady from September to February. However, recent concerns about trade policies sparking a recession have led to declines in US markets over the past two months. As a result, six-month returns for the S&P 500 and Nifty 50 are now aligned, with both indices down roughly 7.5 per cent from their respective peaks. This convergence signals the end of the temporary disconnect between the two markets, reaffirming their close correlation.

 

The IPO engine roars in a market on mute

 

Ather Energy’s initial public offering (IPO) response suggests that primary markets remain subdued, yet companies are undeterred in their public listing ambitions. In the past two weeks, over a dozen firms, including Urban Company, Canara HSBC Life Insurance, Canara Robeco Asset Management, and Prestige Hospitality Ventures, have filed draft red herring prospectuses with the Securities and Exchange Board of India. Investment bankers point to a positive market outlook for the second half of the year, prompting companies to prepare for market entries after June. Ather’s ₹2,981 crore IPO, the first in over two months, saw a modest 1.4x subscription.

 

NSE vs BSE: One giant leap, one false start

 

GIFT Nifty reached an all-time high monthly turnover of $101 billion in April, reinforcing its dominance in India’s offshore derivatives market. This follows its transition in July 2023 from the highly liquid SGX Nifty traded in Singapore. In contrast, BSE’s Sensex derivatives, launched in February 2025 at the International Financial Services Centre, have yet to gain significant traction. While the benchmark recorded a monthly turnover of $327 million in its debut month, volumes dropped to $267 million in March and fell further in April. Industry experts suggest that, as a new product, expanding outreach to foreign portfolio investors, non-resident Indians, and trading members will be crucial for BSE to strengthen its foothold in Gujarat International Finance Tec-City.