Sensex, Nifty fall amid massive sell-off; Shares of Adani group fall sharply – ThePrint – PTIFeed

Mumbai, Nov 21 (PTI) Benchmark equity indices Sensex and Nifty fell on Thursday as shares of the Adani group fell sharply after billionaire industrialist Gautam Adani was charged in the US for alleged bribery and fraud.

Moreover, continued outflow of foreign funds and weak trends in Asian and European countries also led to decline in benchmark indices.

On the BSE, 2,736 stocks fell, 1,237 rose and 92 remained unchanged.

The NSE Nifty index fell 168.60 points, or 0.72 percent, to 23,349.90.

“The domestic market faces new pressure due to escalating tensions in the Russian-Ukrainian conflict and increasing nuclear concerns. In addition, Adani’s recent case with the US Department of Justice has exacerbated the market’s problems.

“Although there were signs of a slowdown in FII sales, they have picked up again, negatively impacting market sentiment, especially in the financial sector. We expect this trend to improve once global and domestic political issues stabilize,” said Vinod Nair, head of research, Geojit Financial Services.

Of the 30-share Sensex stake, Adani Ports fell more than 13 percent after US prosecutors indicted Gautam Adani for his role in an alleged multi-year scheme to pay $265 million in bribes to Indian officials in exchange for preferential treatment. conditions for solar energy. contracts.

Shares of all other Adani groups, including Adani Enterprises, Adani Energy Solutions, Adani Ports and Adani Green Energy, fell sharply by nearly 23 percent.

State Bank of India, NTPC, ITC, Asian Paints, Bajaj Finance and Bajaj Finserv were also among the major laggards.

On the contrary, Power Grid, UltraTech Cement, HCL Technologies and Axis Bank were the top performers.

The BSE smallcap index was down 0.67 percent and the midcap index was down 0.37 percent.

Among the sectoral indices, services fell 4.14 percent, utilities (3.16 percent), commodities (1.55 percent), oil and gas (1.45 percent), energy (1.34 percent) and autos (0 .91 percent).

On the other hand, healthcare, information technology, real estate and technology were the winners.

“Shares of some banking companies came under heavy selling pressure as investor concerns grew over their exposure to Adani Group companies. We expect positive results for telecom companies as the Supreme Court has ruled in their favor, allowing them to claim tax benefits on duties paid on infrastructure components such as parts of towers and green covers,” Siddhartha Khemka, Head, Research, Governance assets, Motilal Oswal Financial. Service LLC, the company reported.

Indian stock markets were closed on Wednesday due to the Maharashtra assembly elections.

“While the market has been in a bear hug for the past few weeks, today’s decline can also be attributed to the news that the Adani group has been indicted on bribery charges, triggering a massive sell-off in its group shares. Apart from the news, most Asian and European markets were in negative territory, which also impacted sentiment,” said Prashant Thaps, senior vice president, research, Mehta Equities Ltd.

In Asian markets, Seoul, Tokyo and Hong Kong closed lower, while Shanghai closed higher.

European markets were trading in negative territory. US markets ended trading mostly in positive territory.

Global benchmark Brent crude jumped 1.13 percent to US$73.71 a barrel.

Foreign institutional investors (FIIs) sold shares worth Rs 3,411.73 crore on Tuesday, exchange data showed.

“Tomorrow markets are likely to react to the preliminary release of the manufacturing and services PMI for the US, Europe and India for November. In the near future, we expect the market to remain volatile due to global geopolitical issues, persistent selling by FIIs and uncertainty around the results of state assembly elections in Maharashtra and Jharkhand,” Khemka said.

Reversing four days of decline, the BSE Sensex rose 239.37 points or 0.31 percent to settle at 77,578.38 on Tuesday. The Nifty index also recovered on Tuesday after falling in the last seven trading days. It rose 64.70 points, or 0.28 percent, to settle at 23,518.50. PTI SUM SUM BAL BAL

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