21 Nov 2024

Sensex, Nifty See Sharp Declines; Adani Group Stocks Take a Hit

Indian stock markets opened weak on Thursday amid mixed global cues, as escalating tensions between Ukraine and Russia kept traders cautious. The Sensex and Nifty extended their early losses, plunging nearly 1% each, driven by selling pressure in Utilities, PSU, and Power stocks. In contrast, IT and TECK sectors managed to register modest gains.

Foreign investor outflows continued to weigh on markets, with FIIs selling equities worth ₹3,411 crore on November 19. Concerns also arose from a domestic rating agency, ICRA, predicting a slowdown in India's GDP growth to 6.5% in the September quarter due to heavy rains and weaker corporate performance. Economic Affairs Secretary Ajay Seth acknowledged the slowdown but maintained that overall growth remains on track to meet the projected 6.5-7% for the fiscal year.

Market Performance

  • BSE Sensex: Trading at 76,941.34, down by 637.04 points (-0.82%).
  • Broader Indices: BSE Mid Cap fell 0.90%, and Small Cap dropped 0.99%.
  • Top Gainers: Infosys (+0.91%), HCL Tech (+0.73%), TCS (+0.63%).
  • Top Losers: Adani Ports (-10.00%), SBI (-4.68%), NTPC (-3.06%).

Sectorally, Utilities (-4.55%) and PSU (-2.80%) were the worst performers, while IT (+0.49%) and TECK (+0.39%) were the only gainers.

Global Market Update

Asian markets traded mixed as the People's Bank of China kept rates unchanged, and traders assessed potential US Fed interest rate actions. Back home, Adani Group stocks came under intense pressure after US prosecutors accused Gautam Adani of fraud and bribery in renewable energy contracts, causing a sharp drop in the group's dollar bonds.

Key Economic Highlights

  • India's economy grew by 6.7% year-over-year in Q1 FY25, marking the slowest growth in five quarters.
  • Despite concerns over inflation and food prices, overall economic risks remain limited, per Economic Affairs Secretary Ajay Seth.

Nifty Performance

  • CNX Nifty: Trading at 23,321.60, down by 196.90 points (-0.84%).
  • Top Gainers: Infosys (+1.19%), HCL Tech (+0.90%), TCS (+0.76%).
  • Top Losers: Adani Enterprises (-10.00%), Adani Ports (-10.00%), SBI (-4.71%).

Asian indices showed a mixed trend, with Nikkei 225 declining by 0.9% and KOSPI rising by 0.51%.