Benchmark equity indices opened on a steady note on Monday as investors kept a close watch on the much-anticipated Tata Capital initial public offering and the approaching Q2 earnings season.
At 9:23 am, the S&P BSE Sensex was up 44.18 points at 81,251.35, while the NSE Nifty50 advanced 18.45 points to 24,923. Broader market indices also inched higher as early trade volatility eased.
Hospital shares emerged as early gainers after the government revised rates under the Central Government Health Scheme. Apollo Hospitals, Max Healthcare and Narayana Health rose sharply in response to the announcement.
The spotlight, however, was firmly on Tata Capital as it launched one of the year’s largest IPOs. The issue, which opens for subscription today and will close on October 8, aims to raise Rs 15,511.87 crore through a combination of a fresh issue worth Rs 6,846 crore and an offer for sale of Rs 8,665.87 crore by existing shareholders including Tata Sons and IFC.
The price band has been fixed at Rs 310 to Rs 326 per share with a lot size of 46 shares, translating into a minimum investment of just under Rs 15,000 for retail participants.
The allotment is expected on October 9, with a listing likely on October 13. Ahead of the launch, Tata Capital secured nearly Rs 4,642 crore from anchor investors, with LIC emerging as the largest subscriber. At the upper end of the price band, the company’s valuation is pegged close to Rs 1.38 lakh crore.
The IPO comes against the backdrop of a regulatory requirement: as an “upper-layer” non-banking financial company, Tata Capital is mandated by the Reserve Bank of India to list its shares by September 2025.
Market watchers said the listing would also provide the company additional flexibility to expand its retail loan book, particularly in unsecured segments.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said policy-driven optimism remains intact but foreign institutional outflows continue to weigh on investor sentiment.
“The positive sentiments triggered by the growth-stimulating monetary policy face headwinds from the continuing FII selling, but can be sustained by positive news on growth and corporate earnings for FY27. Growth is likely to remain strong, assisting in corporate earnings growth of above 15% in FY27. The market will be looking forward to a positive resolution of the US-India trade tensions. A trade deal can turn out to be a trigger for a rally,” he said.
Vijayakumar added that domestic inflows are increasingly chasing consumption-led themes such as automobiles, banking and financials, telecom, aviation, metals, cement and digital platforms. He pointed to Kotak Mahindra Bank’s robust Q1 credit and deposit growth figures as further evidence of this underlying trend.
