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Rout in Adani group shares, banks drag Sensex 874 pts, Nifty ends at 17,600

Closing Bell: Adani Enterprises and Adani Ports were the leading Nifty losers, which ended 18 and 15 per cent lower, respectively. SBI, ICICI Bank, IndusInd Bank were next in line sinking up to 5%

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CLOSING BELL

Equity markets buckled under severe selling pressure to close at 3-month lows on Friday driven by an extended slump in Adani group stocks that soured overall market sentiment. 

Banking stocks were the top laggards as claims of high debt of Adani firms made by Hindenburg in its recent report had a sentimentally negative impact on the banking space, especially PSU banks, analysts said.  

The BSE Sensex cracked 874 points to close at 59,331, its lowest level since Oct 21, 2022 when it ended at 59,307. The NSE Nifty dropped to 17,604 with a massive loss of 288 points. 

ROUT IN ADANI GROUP SHARES

Adani Enterprises and Adani Ports were the leading Nifty losers, which ended 18 and 15 per cent lower, respectively. SBI, ICICI Bank, IndusInd Bank were next in line dropping up to 5 per cent. 

Shares of other Adani firms--Adani Wilmar, Adani Transmission, Adani Green, Adani Total Gas, Adani Power, Ambuja Cement and ACC-- closed with losses of 5-20 per cent on top of Wednesday's decline, which came as short-seller Hindenburg Research said it held short positions in Adani Group companies through US-traded bonds and non-Indian-traded derivative instruments and accused the group of stock manipulation and accounting fraud. Read here

F&O Check: Shorts rise at Adani counters; AEL may hit Rs 2,600 level

Four Adani group stocks listed in the F&O (Futures & Options) segment - Adani Enterprises, Adani Ports, ACC and Ambuja Cement witnessed a build-up of Open Interest (OI) on the short-side since the beginning of this week, which is a couple of days prior to the release of Hindenburg report. Check technical outlook

Adani group under Sebi's lens

As per Reuters, SEBI has increased scrutiny of deals by the Adani Group over the past year and will also study the report issued by Hindenburg Research to add to its own ongoing preliminary investigation into the group's foreign portfolio investors. Read more

Q3 IMPACT

Shares of Tata Motors (up 6 per cent), Bajaj Auto (up 5.8 per cent) and Dr Reddy's (up 3 per cent) firmly resisted Friday's market crash on strong Q3 earnings. Besides, auto, pharma, FMCG indices were the only outperformers in a broad-based selloff, while the Nifty PSB and oil & gas indices were the worst hit with cuts of 5 per cent each. 

4:10 PM

MARKET COMMENT: Nishit Master, Portfolio Manager, Axis Securities

Indian markets witnessed a fresh bout of selling today on the back of market participants evaluating the impact of the recently released report by US short-seller Hindenburg Research on Adani Group. The corporate houses with heavy leverage and/or expensive valuations were hit the most during this sell-off. We expect markets to stabilize over the next few trading days as we expect bargain hunters to emerge and start picking good quality stocks with history of free cash flow generation and which are available at reasonable valuations. Some part of India’s underperformance vis-à-vis global markets off late can be explained by the huge outperformance by India last year, and thus markets attempting to revert back to the mean. However, we believe that India remains the fastest growing major economy globally and should continue to attract foreign capital in the medium to long term, which should bode well for Indian markets.

4:05 PM

TECHNICAL OUTLOOK: Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty started the week on a positive note however witnessed steep selling pressure in the second half of the week. As a result, it broke down from the consolidation range, which it was witnessing for the last one month. It broke the support zone of 17800-17760, which will now act as a resistance as per the principle of role reversal. On the downside, the Nifty has halted near the 61.8% retracement of the Sept – Dec 2022 rise & 200 DEMA, which are near 17550. Today’s low of 17493 will be a key support. If that is breached then the decline can continue till 17300. 

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4:00 PM

MARKET COMMENT: Vinod Nair, Head of Research at Geojit Financial Services

The sharp slump in the Indian market was triggered by an unfavourable research report on Asia’s richest promoter group companies. This is also affecting the banking stocks even though the results of the sector are optimistic due to high group lending, indicating potential risk. PSU banks are the most impacted compared to private banks owing to high exposure. The FIIs' cautious stance ahead of the Union Budget and FOMC meetings also fuelled the collapse.

3:56 PM

Over 800 stocks advanced, while 2,666 declined

3:52 PM

Adani Enterprises, Adani Ports, SBI top Nifty50 losers, decline up to 18%

3:48 PM

Tata Motors, Bajaj Auto, Dr Reddy's top Nifty50 gainers, rise up to 6%

3:44 PM

Nifty Auto climbs 1%, while Nifty PSU Bank index slips 5%

3:40 PM

Broader markets bleed; India VIX soars over 18%

3:37 PM

SENSEX HEATMAP: 7 out of 30 index constituents close in green

3:35 PM

CLOSING BELL: Nifty50 closes below 17,650 levels, down 250pts

3:32 PM

CLOSING BELL: Sensex falls over 850pts, slips below 60K-mark

3:25 PM

Anupam Rasayan net profit jumps 43.61% to Rs 54.43 crore in Dec qtr

Chemicals maker Anupam Rasayan India Ltd on Friday posted a 43.61 per cent jump in its consolidated net profit to Rs 54.43 crore in the third quarter of the current fiscal. READ MORE
Markets, bulls, bears, stocks, trading, technicals, market technical, technical analysis

3:18 PM

Glenmark Life Sciences profit rises 1% in Dec quarter on API strength

The Mumbai-based drug maker's profit rose to 1.05 billion rupees ($12.86 million) in the three months ended Dec. 31, from 1.04 billion rupees a year ago. READ MORE
Glenmark Pharmaceuticals

3:04 PM

Reliance Industries hits 10-month low, stock slips 15% since December

Shares of Reliance Industries (RIL) fell 3 per cent to hit 10-month low of Rs 2,312 in Friday’s intra-day trade, on the back of heavy volumes, as the sharp sell-off was seen across equities. The stock of country’s largest company in terms of market capitalisation traded its lowest level since March 2022. READ MORE

Reliance Industries
 
2:56 PM

BSE 500:: Dixon Tech, HCL Tech, ACC among volume shockers

Dixon Technologies witnessed unusally high volume of around 2.63 lakh shares so far on the BSE as against its five-day average volume of around 8,150-odd shares. Similarly, Polyplex Corporation, HCL Technologies, ACC and Adani Ports were among the other BSE 500 volume toppers on Friday. VIEW MORE

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First Published: Jan 27 2023 | 7:54 AM IST

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