Urban Co.’s Trading Debut and Bank Shares Surge Lift Market Sentiment

Local equities are poised for a strong opening, buoyed by positive developments in India-US trade talks. While Asian markets take a breather after a nine-day rally, India may finally narrow its performance gap with regional benchmarks this year. Urban Co.'s highly anticipated market debut—the year's most-subscribed IPO—could further energize market sentiment.

Traders anticipate significant listing-day gains for Urban Co., following an IPO oversubscribed 100 times. Retail and institutional demand suggests potential follow-on buying, with Ripple effects expected for other Indian startups eyeing public listings. The fervor echoes the 2021 startup IPO boom, though veterans recall how quickly such enthusiasm faded during broader market corrections.

Bank shares continue their impressive run, with the Nifty Bank index marking its longest winning streak in eight years. This comes despite industry headwinds like sluggish credit growth and margin pressures. Analysts suggest the December quarter may signal a turning point for the sector.