Nifty Internet Index Soars 8% in August, Beats Nifty 50
By Market Desk
Discover how the Nifty India Internet index surged 8% in August, outperforming the Nifty 50. Learn about the factors driving this growth, including block deals and MSCI rejig.
The Nifty India Internet index recorded an 8% surge in August, significantly outperforming the benchmark Nifty 50, which experienced a 1.3% decline during the same period. This robust growth in new-age digital businesses was primarily fueled by block deals and the Morgan Stanley Capital International (MSCI) index rejig.
August Market Performance Highlights
- Nifty India Internet index closed at 1,458.4.
- Nifty IPO index also posted a 4% gain.
August marked the busiest month for Initial Public Offerings (IPOs) this year, with 22 mainboard issuances successfully raising ₹21,730 crore. While July saw a higher total value of ₹28,648 crore through fresh issues, August led in the sheer number of issuances.
Key Issuance Metrics
- 22 mainboard IPOs in August raised ₹21,730 crore.
- One offer-for-sale (OFS) issuance in August raised ₹31,446 crore.
- Total capital raised by 61 companies in 2026-27 as of August 31 stands at approximately ₹1.06 trillion.
Over the 30 days ending August 31, the thematic internet index, which tracks 27 platform and technology-enabled businesses, saw substantial gains from its top constituent companies. These included significant upward movements across key players.
Top Internet Index Gainers
- Urban Company surged by 29.84%.
- Paytm parent One 97 Communications climbed 21.63%.
- PolicyBazaar parent PB Fintech rose by 14.22%.
- Lenskart, a major component of the IPO index, gained 17.74%.
The MSCI index rejig provided a boost to several companies, with Groww parent Billionbrains Garage Ventures entering the index, and Eternal and Swiggy seeing increased weights. Such inclusions typically lead to passive fund inflows from global index-tracking funds.
Valuation Outlook and Index Attractiveness
- Nifty Internet index trades at a high price-to-earnings multiple of 160x.
- Nifty IPO index trades at 60x.
Analysts maintain a bullish long-term outlook on these new-age businesses, despite many still needing to demonstrate consistent profitability. The IPO index is considered more attractive due to its significant exposure to financial services and asset management companies like Tata Capital, SBI AMC, and ICICI Prudential AMC, which offer more transparent earnings and growth prospects.