Indian benchmark indices closed largely unchanged after a highly volatile trading session on Monday. The Sensex closed 56.99 points lower, or 0.07%, at 79,648.92, while the Nifty declined by 20.50 points, or 0.08%, to settle at 24,347.00.
Market breadth was mixed with 1,760 shares advancing, 1,801 shares declining, and 87 shares remaining unchanged.
Among the top gainers on the Nifty were Hero MotoCorp, Axis Bank, ONGC, Infosys, and JSW Steel. In contrast, NTPC, Britannia Industries, Adani Ports, SBI, and Dr. Reddy’s Laboratories were the major losers.
“Indian markets managed a recovery after opening down in the morning on the back of the overhang of the Hindenburg report over the weekend. The markets proved resilient and buying emerged at lower levels to help both the frontline and broader indices to recover from the day low into the close,” said Ajay Bagga, banking and market expert.
“Overall, sentiment is more focussed on geopolitical risk from Iran-Israel potential conflict, the unwinding of the Yen carry trade and key data on inflation from the US and Europe this week. The Hindenburg accusations did not have much of an impact on the markets. Global cues remain predominant for now,” he added.
The ongoing dispute between Hindenburg Research and the Adani Group has intensified, with Hindenburg alleging a conflict of interest involving SEBI Chairperson Madhabi Puri Buch. According to Varun Aggarwal, Founder and Managing Director of Profit Idea, the Adani Group’s stock valuations have seen partial recoveries despite significant declines following Hindenburg’s January 2023 report. SEBI has responded by clarifying that Buch’s investments predate her tenure and did not involve Adani stocks. SEBI has concluded investigations into 23 out of 24 issues, with six Adani companies receiving show-cause notices.
Sector-wise, FMCG, power, PSU banks, and media stocks saw declines of 0.5-2%, while gains were observed in banking, telecom, IT, oil & gas, metal, and realty sectors, with increases ranging from 0.3-1%.
The BSE Midcap index ended flat, while the Smallcap index posted a gain of 0.5%.
Market sentiment was initially weighed down by renewed concerns following the Hindenburg report over the weekend. However, buying interest at lower levels helped the markets recover from their intraday lows.
Adani Green and Ambuja Cements closed in the green, while other Adani Group stocks ended marginally down after recovering from earlier declines
Meanwhile, the Indian Rupee is anticipated to face slight weakening pressures due to a strengthening US Dollar and rising global crude oil prices. These pressures are further exacerbated by foreign selling and ongoing geopolitical tensions in the Middle East. However, positive trends in global markets may provide some support to the Rupee.
Looking ahead, market participants will closely monitor India’s upcoming Consumer Price Index (CPI) and Index of Industrial Production (IIP) data, along with key economic indicators from the US.
The day’s market performance highlights the complex interplay of global geopolitical developments, domestic regulatory concerns, and investor sentiment in shaping the direction of Indian equities.
