Domestic equity markets ended the volatile trading session with gains on Monday ahead of key economic events. The Union Budget and US Federal Reserve policy meeting, scheduled later this week, will be key event to watch out in the near term. Buying in the select heavyweights lifted the indices higher.
Adani Group stocks continued to hog spotlight for the day and majority of them were hammered again during the session. Market participants believe that the tug of war between Adani Group and Hindenburg will continue in the near term and keep the traders on the tenterhooks.
For the day, BSE Sensex gained 169.51 points or 0.29 per cent to 59,500.41, whereas NSE’s Nifty50 Index settled at 17,648.95, gaining 44.60 points or 0.25 per cent. BSE midcap and smallcap indices settled in red, while the fear gauge India VIX spiked over 2 per cent to 17.71-level.
Most Asian stock markets fell on Monday as caution kicked in ahead of a Federal Reserve meeting and key economic data this week, while Chinese shares rose sharply as they resumed trade after a week-long holiday. European stocks slipped, said Deepak Jasani, Head of Retail Research, HDFC Securities.
“Nifty showed signs of making a temporary bottom by forming a bullish counterattack pattern. Ahead of the Union Budget and US Fed meet outcome, the markets could remain volatile with an upward bias for the next few sessions. 17,760 could be the resistance for the Nifty while 17,493-17,542 band could offer support,” he said.
On a sectoral front, Nifty IT index rose over a per vent, whereas financial services and PSU lenders advanced over half-a-per cent each. On the downside, Nifty FMCG index dropped the most. Media, metals, auto and pharma indices also settled in red.
Adani Group stocks continued to remain at the focus of traders amid the clarification from the Gautam Adani-led conglomerate after allegations by short-seller Hindenburg. However, majority of them extended their loses for the day, barring a few.
Adani Total Gas and Adani Green Energy plunged 20 per cent each, whereas Adani Transmission dropped 15 per cent. Adani Wilmar, Adani Power and New Delhi Television were locked in the lower circuit of 5 per cent each. Adani Ports settled marginally lower. Among the gainers, Adani Enterprises, jumped 4 per cent, whereas Ambuja Cement was up 2 per cent. ACC gained over a per cent during the session.
On the Nifty50 pack, Bajaj Finance gained 5 per cent after strong Q3 performance. Ultratech Cement, Bajaj Finserv, Asian Paints HCL Technologies and NTPC jumped 2 per cent each. Coal India, Grasim, Infosys, Eicher Motors and Reliance Industries added over a per cent each.
On the contrary, Power Grid tanked 3 per cent, followed by a 2 per cent fall in Bajaj Auto, IndusInd Bank, Larsen & Toubro, JSW Steel, Tata Steel and Hindalco each. Hindustan Unilever, SBI Life Insurance, Cipla, Hero Motocorp and ITC shed a per cent each.
The response by Adani had a mixed effect on the stock group and market. The saga is likely to continue as a hanging risk in the minds of the investors in the medium-term, said Vinod Nair, Head of Research at Geojit Financial Services.
“To expect a scientific assessment report either by a strong independent third party or government is dim in the short-term. Now the focus of the market will be on budget and fed policy,” he said.
A total of 3,763 stocks that traded for the day on BSE, of which 2,045 settled lower, while 1,555 settled higher. Remaining 163 stocks ended unchanged. A total 199 stocks hit an upper circuit on BSE, whereas 276 stocks hit the lower circuit during the trading session.
In the broader markets, Data Patterns jumped 12 per cent after strong Q3 performance, whereas Hi-Tech Gears, Aegis Logistics, Unichem Labs, AGI Greenpac, Intellect Design Arena were up 8-12 per cent for the day. Mahindra CIE Automotive, Gravita and Nykaa were among the other gainers.
Heranba Industries plunged 20 per cent after reporting a 73.1 per cent fall in the net profit in December 2022 quarter. Arihant Capital was down 12 per cent, whereas Monarch Networth dropped 9 per cent for the day. EID Perry, Heritage Foods, Shalimar Pains and Bharat Electronics dropped 6-9 per cent each.
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