Sensex, Nifty50 end Thursday on a mixed note after a choppy session: Adani Group stocks continue to tumble

• India’s benchmark indices ended Thursday on a mixed note after a choppy session.
• While Sensex closed higher by 224 points or 0.38% at 59,932, Nifty50 ended 6 points or 0.03% lower at 17,610.
• Adani Group stocks continued to tumble after the Adani Enterprises follow-on public offer (FPO) was called off late night on Wednesday.

India’s benchmark indices Sensex and Nifty50 ended mixed on Thursday while Adani Group stocks tumbled after the Adani Enterprises follow-on public offer (FPO) was called off late night on Wednesday.

While Sensex closed higher by 224 points or 0.38% at 59,932, Nifty50 ended 5.90 points or 0.03% lower at 17,610.

Domestic markets continued to remain under pressure despite positive cues from global peers that traded higher on smaller rate hikes by the US Fed and expectation of very few rate hikes ahead.

The rout in all the nine Adani Group stocks left investors jittery and all this after the Hindenburg Research report came out.

Investment bankers Credit Suisse and Citigroup have also reportedly stopped accepting securities of Adani Group companies as collateral for margin loans.

“Despite a growth oriented budget, drop in crude prices and upside in the global market, the domestic market is not able to gain because of the Adani saga having a ripple impact on the investors,” said Vinod Nair, head of research at Geojit Financial Services.

“In addition, the premium valuation of India continues to weigh down the performance compared to other emerging markets which are expecting upside in the economy. The global markets are positive in assumption of being in the last phase of the rate hikes,” Nair added.

Top winner and losers on Nifty50
Source: NSE, February 2, 2023

Global markets trend upwards on smaller rate hike by the US Fed
Markets in the US rebounded after the US Fed delivered a smaller rate hike of 25 basis points as anticipated. Fed chair Jerome Powell said that the process of disinflation has started, which could mean a softer stance by the Fed going forward.

S&P 500 closed 1.02% up, while Dow Jones was flat with gains of 0.02%. The tech-heavy Nasdaq closed 2% in the green.

In Asia, most markets ended on a positive note on Thursday, led by Taiwan Weighted which was up 1.14%, while KOSPI surged 0.78%. Shanghai Composite was up 0.02%, while Hang Seng fell 0.52%.
Source: NSE as on February 2, 2023


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