New Delhi: The Indian stock market opened higher on Thursday as buying was seen in the PSU bank, auto, financial service and metal sectors on Nifty. At around 9:37 am, Sensex was trading at 78,744.55 after gaining 271.68 points or 0.35 per cent, while the Nifty was trading at 23,812.50 after gaining 84.85 points or 0.36 per cent.
The market trend remained positive. On the National Stock Exchange (NSE), 1,142 stocks were trading in green, while 795 stocks were in red. According to experts, “the market will be expecting both fiscal and monetary stimulus. These expectations can keep the market in a consolidation phase in the near-term.”
“The market reaction after the Budget and monetary policy will depend on the policy initiatives,” they added. Nifty Bank was up 400.60 points or 0.78 per cent at 51,633.60. Nifty Midcap 100 index was trading at 57,104.90 after rising 47 points or 0.08 per cent. Nifty Smallcap 100 index was at 18,765 after rising 32.35 points or 0.17 per cent.
Akshay Chinchalkar of Axis Securities said, “The Nifty fell for the sixth day in seven, as early session gains failed to stick. Monday’s bullish harami formation wasn’t activated on Tuesday as prices failed to take out the prior day’s high.”
“The first two trading days of the week have generated successive candles with long shadows showing indecision continues to prevail. Technically speaking, the 23,880-24,070 area offers resistance while support lies between 23,500 and 23,640,” he noted. On the sectoral front, selling was seen in the Realty, Pharma, FMCG, IT and Media sectors.
In the Sensex pack, SBI, Kotak Mahindra Bank, ICICI Bank, Axis Bank, Maruti Suzuki, HDFC Bank, ITC, IndusInd Bank and Adani Ports were the top gainers. Asian Paints, TCS and Reliance were the top losers. Markets in the US were closed on Wednesday on account of Christmas. The S&P 500 added 1.10 per cent to 6,040 and the Nasdaq gained 1.35 per cent to close at 20,031.13 on Tuesday.
In the Asian markets, except Jakarta, China, Bangkok, Seoul and Japan were trading in green. Foreign institutional investors (FIIs) sold equities worth Rs 2,454.21 crore on December 24, while domestic institutional investors bought equities worth Rs 2,819.25 crore on the same day.
New Delhi: Driven by strong fundamental and robust economic growth, the domestic benchmark indices are set to give positive returns in 2024 for the ninth consecutive year. As per a report by Standard Chartered bank, 2024 was a year of two distinct halves for Indian equities and bonds. While the first half saw strong growth, supported by robust economic activity and corporate earnings, second half was marked by volatility amid consolidation.
“2024 was a year of two halves with H1 seeing strong performance of Indian equities and bonds on strong economic growth and corporate earnings delivery. However, H2 witnessed a surge in volatility,” according to the report. Despite this, Nifty 50 index has gained 9.21 per cent while the Sensex index rose by 8.62 per cent.
Another report by Motilal Oswal said that Indian equities have outperformed US markets over the past 35 years, as investments in the Indian equity markets growing by nearly 95 times since 1990.
If someone had invested Rs 100 in Indian stock markets in 1990, it would have grown to Rs 9,500 by November 2024. In comparison, Rs 100 invested in US stock markets during the same period would have grown to Rs 8,400, according to the report. Moreover, gold delivered a return of 32 times during the same period.
According to another report by Motilal Oswal Wealth Management, after a subdued earnings performance in the first half of FY25, earnings are expected to recover in H2, driven by increased rural spending, a buoyant wedding season, and pickup in government spending.
“We further expect earnings to gain momentum, delivering a 16 per cent CAGR over FY25-27E. Moreover, the recent market correction and the moderation in valuations offer an opportunity to add selective bottom-up stock ideas,” it mentioned. “We remain optimistic about the long-term trend, given the strength of corporate India’s balance sheets and the prospects for robust, profitable growth,” the report noted.
Mumbai: The domestic benchmark indices ended flat on Tuesday ahead of Christmas as selling was seen in IT, financial service, pharma, PSU bank, metal and realty sectors in Nifty.
At closing, Sensex settled at 78,472.87 down by 67.30 points or 0.09 per cent and Nifty ended at 23,727.65 down by 25.80 points, or 0.11 per cent. Nifty Bank ended at 51,233 down by 84.60 points, or 0.16 per cent. The Nifty Midcap 100 index closed at 57,057.90 at the end of trading after dropping 35 points, or 0.06 per cent. While Nifty Smallcap 100 index closed at 18,732.65 after gaining 44.85 points or 0.24 per cent.
According to market experts, the domestic market concluded flat ahead of the holiday, with metal and power stocks dragging performance while FMCG and auto sectors gained from recent corrections.
“The near-term market trajectory hinges on the outcome of Q3 results and the Union budget, but caution prevails due to a strong dollar, high bond yields, and concerns over rate cuts. The INR hitting an all-time low, further evoked the caution,” they added.
On the Bombay Stock Exchange (BSE), 1,980 shares ended in green and 2,016 in red, whereas there was no change in 96 shares. On the sectoral front, except Auto, FMCG, Private Bank, Consumption and Healthcare all sectors ended in red.
In the Sensex pack, PowerGrid, SBI, Infosys, Titan, IndusInd Bank, UltraTech Cement, Bajaj Finance, Tata Steel and Maruti were the top losers. Whereas, Tata Motors, ITC, Nestle India, NTPC, TCS, Zomato, Axis Bank, M&M, Kotak Mahindra Bank and Sun Pharma were the top gainers.
Foreign institutional investors (FIIs) sold equities worth Rs 168.71 crore on December 23, while domestic institutional investors bought equities worth Rs 2,227.68 crore on the same day.
The Indian currency fell 9 paise to a new record low of 85.20 against the US dollar. On Monday, the rupee closed at 85.11 per dollar. The Indian stock market will be closed on Wednesday on the occasion of Christmas and the next trading session will be on Thursday.
Mumbai: The Securities and Exchange Board of India (SEBI) on Monday warned investors against performing transactions on unregistered online platforms.
The markets regulator said that unregistered online platforms are offering unlisted debt securities to investors. “Such platforms appear to provide an avenue for investors to acquire unlisted debt securities. These platforms are not subject to any regulatory or supervisory oversight, and lack basic investor protection or investor grievance redress mechanisms,” SEBI said in a statement.
The activities undertaken by the unregistered online platforms or issuers of the unlisted debt securities are in violation of Companies Act, 2013, SEBI Act, 1992, SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 and SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021.
This violation occurs because offering unlisted securities to more than 200 investors makes it a “deemed to be public issue” under the Companies Act, 2014. These activities could result in legal, regulatory or enforcement action against those involved in such activities.
SEBI recommended investors to not engage with such platforms. Recently, the SEBI issued an interim order against some entities operating such unregistered platforms.
“Investors should consider utilising Online Bond Platforms operated by SEBI registered stock brokers authorised by the Bombay Stock Exchange (BSE) and/or the National Stock Exchange (NSE) to act as online bond platform providers (OBPPs) for investing in listed debt securities,” the markets regulator emphasised.
SEBI is issuing this caution, advising investors to not engage with or undertake investment or trading activities through un-registered intermediaries, web applications, platforms and apps.
The regulator also said that these platforms are neither authorised nor recognised, and investors engaging in such activities would not be entitled to essential protections, such as investor protection under SEBI’s or stock exchanges’ jurisdiction, access to grievance redressal mechanisms administered by exchanges and dispute resolution services offered by authorised entities.
For the September quarter, Tilaknagar Industries reported a 5.8% year-on-year increase in revenue, which reached Rs 374.8 crore.
The winter season is traditionally a strong period for liquor consumption.
Shares of Tilaknagar Industries soared to a record high of Rs 341.9 on Tuesday, November 5, marking a significant 17% increase in a single trading session. The spike in stock price followed the company’s impressive financial performance for the September quarter and the optimistic projections set by management, including an anticipated revenue of over Rs 1,300 crore for the Financial Year 2024-25.
In an exclusive interview with CNBC-TV18, Amit Dahanukar, Managing Director of Tilaknagar Industries, expressed confidence that the second half of the fiscal year will see stronger performance, driven by robust sales growth. He highlighted a particular focus on the company’s stronghold markets in Andhra Pradesh and Telangana, where Tilaknagar generates around half of its total sales. Dahanukar also shared that the company has seen a 10% increase in store count in Andhra Pradesh, further solidifying its foothold in the region.
Financial Performance Shows Strong Growth
For the September quarter, Tilaknagar Industries reported a 5.8% year-on-year increase in revenue, which reached Rs 374.8 crore. The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) surged by 39.1%, reaching Rs 66 crore. EBITDA margins also saw a notable improvement, climbing over 400 basis points to 17.6%, compared to 13.4% during the same period last year.
Dahanukar remains optimistic that the company can sustain a margin of around 15.5% for the full fiscal year, excluding any one-time incentives or adjustments. The strong financial results were bolstered by a 3.1% increase in sales volumes, with the company shipping 31 lakh cases of its various liquor products during the quarter. This volume growth, combined with a reduction in costs, contributed to a remarkable 57% year-on-year rise in profits.
Stock Performance: A Stellar 2024
Tilaknagar’s stock has been on an impressive upward trajectory in 2024, having already gained 41% year-to-date. This marks the latest chapter in a string of successful years for the company’s stock, which has consistently delivered strong returns since 2020. In the last four years, the stock has posted annual gains of 123% in 2020, 213% in 2021, 18% in 2022, and 118% in 2023, attracting attention from both retail and institutional investors.
Expanding Beyond Traditional Markets
While Andhra Pradesh and Telangana remain the company’s key markets, Dahanukar indicated that Tilaknagar is exploring opportunities to expand its footprint into other regions of India. The company’s focus is on increasing brand visibility and diversifying its consumer base, in line with its overall growth strategy.
A Diverse Portfolio of Liquor Brands
Tilaknagar Industries, which was founded in 1933 as The Maharashtra Sugar Mills Ltd, evolved into one of the leading manufacturers of Indian Made Foreign Liquor (IMFL) and Extra Natural Alcohol. With a portfolio spanning several liquor categories, the company boasts a strong presence in the market and exports to various regions including Asia, Africa, the Middle East, and Europe.
Some of Tilaknagar’s key brands include:
Mansion House Brandy: A top-selling premium brandy.
Courier Napoleon Brandy: A widely recognised and popular brandy.
Senate Royale Whisky: A high-end whisky catering to premium consumers.
Madiraa Rum: A renowned rum brand.
Blue Lagoon Gin: A well-known gin brand.
The company’s flagship production facility is based in Shrirampur, Ahmednagar district, Maharashtra, where it operates with a capacity of 150 kilolitres per day (KLPD). In line with its innovative approach, Tilaknagar recently launched Mansion House Green Apple Flandy, a flavoured brandy variant that quickly captured 20% market share within the first quarter of its launch.
With an established track record of growth, a strong portfolio of products, and a commitment to expanding its market presence, Tilaknagar Industries is well-positioned to continue its upward trajectory. The company’s strong performance, both in terms of financials and stock market returns, underscores its resilience and ability to adapt to changing market conditions, making it one of the more exciting players in the alcoholic beverage industry.
As the winter season approaches, traditionally a strong period for liquor consumption, the company’s prospects appear bright, signaling potential for further growth in the coming months. Investors and market analysts alike will be closely watching Tilaknagar’s next steps as it looks to build on its momentum.
Newsbusiness Tilaknagar Industries Shares Surge 17% As Liquor Demand Picks Up During Winter Season
Stock market today: Indian stock markets ended a five-day losing streak on Monday as upbeat quarterly results from ICICI Bank and other lenders powered gains in banking stocks, despite ongoing foreign selling and lackluster corporate earnings. The BSE Sensex climbed 0.76 per cent or 602.75 points to close at 80,005.04, while the Nifty50 rose 0.65 per cent or 158.35 points to settle at 24,339.15. Key factors for major gains 1. Strong banking sector performance Among the 30 Sensex stocks, ICICI Bank led the gains, climbing 3 per cent following its report of a 14.5 per cent increase in standalone profit to Rs 11,746 crore for the second quarter ending September 2024. While other major gainers included JSW Steel, Mahindra & Mahindra, Adani Ports, Tata Steel, Sun Pharma, Hindustan Unilever, Tata Motors, and State Bank of India. On the downside, Axis Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank, and Maruti were among the lossers. All sectoral indices on the Nifty were trading in positive territory, with the Nifty PSU bank index leading the pack, up 3.8 per cent. The Nifty witnessed a correction of approximately 8.3 per cent from its recent peak, while the mid and small cap indices experienced corrections of 9-10 per cent, respectively. The Indian rupee remained stable at 84.0775 against the US dollar, as expectations that the central bank would maintain its stance on the currency offset pressure from a strong dollar. 2. Positive earnings reports fuel market optimism The Indian stock market experienced a positive shift in sentiment, largely attributed to the sharp correction in global crude prices on international markets, according to traders. Head of Research, Geojit Financial Services, Vinod Nair said: “The market exhibited a rebound after continuous selloff last week. Positive results from banks and a slump in oil prices in expectation of an ease in retaliations in the Middle East aided investor sentiment.” “Stability in the broad-based rally requires more evidence from earnings, which are currently in the doldrums of weak demand and margin pressure. We expect companies with a less leveraged balance sheet and growth prospects to outperform when the market stabilizes,” Nair added. The market opened on a positive note, with the Sensex crossing the 80,000 mark and Nifty50 moving above 24,400. During the intra-day trading session at 12.22 pm, the Sensex had surged to 80,433.23, up 1,030 points or 1.30 per cent, while Nifty50 reached 24,465.05, up 284.25 points or 1.18 per cent. According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 3,036.75 crore on Friday, while Domestic Institutional Investors (DIIs) purchased shares amounting to Rs 4,159.29 crore. 3. Global market stability supports rebound Earlier in the day, the US stock index futures experienced a significant surge potentially recovering some of the losses from the previous week’s turbulent trading session. Investors are gearing up for crucial corporate earnings reports and the final stage leading up to the presidential election on November 5. “The imminent US presidential elections and the uncertainty associated with that will continue to weigh on markets,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. Dow E-minis surged 203 points or 0.48per cent, while US S&P 500 E-minis climbed 35 points or 0.60per cent, and Nasdaq 100 E-minis advanced 160.5 points or 0.78per cent. In Asia, the markets in Seoul, Tokyo, Shanghai, and Hong Kong closed higher. Meanwhile, European markets were trading in positive territory. The global oil benchmark, Brent crude, saw a significant decline of 5.84 percent, settling at $71.54 per barrel. In premarket trading, major tech giants showed strong gains ahead of their upcoming earnings reports later this week. Alphabet’s stock price increased by 1.6per cent, Meta Platforms rose 1.3per cent, Microsoft was up 1per cent, Apple gained 0.7per cent, and Amazon.com added 0.9per cent. Nvidia, a prominent player in the AI-chip market, experienced a 1.3per cent increase in its stock price. The yield on the benchmark 10-year US Treasury note reached a three-month high of 4.292per cent on Monday.
Nike and Adidas have been on two very contrasting journeys in the stock market in 2024. According to reports, the former’s stock dropped sharply while it registered poor sales projections, fell in its digital revenue, and had some inventory issues. This made the stock of the company fall as much as 31.71% year-to-date. Conversely, the stock of Adidas soared based on the immense popularity of the retro sneakers combined with robust earnings reports.Its stock surged 30.12%. The problems with Nike were then further exacerbated through the strong emphasis on online trade and significant shortcomings in China. Conversely, Adidas was able to use product innovation and excellent marketing strategies to instill optimism in the investors. Despite being at a low point, under-valued shares and market position make Nike a good investment consideration.
Challenges facing Nike 2024
As per a report published on The Global Treasurer, Nike’s fall in 2024 can be attributed to several important reasons. The company put out very weak guidance for fiscal year 2025, which caused investors a great deal of consternation. In the last days of June, the company blindsided the markets when it reported that it would experience a 10% fall-off in sales for the next quarter, significantly worse than the estimated 3% decline. This news was what made a bad situation worse and worse still was when the stock price for Nike fell 31.71% with a notable 23.39% drop during the last month alone.
The sharpest decline was recorded between June 26 and 27 when shares from $94.19 dropped down to around $75.34, and currently trading at around $73.40. Nike aggressive push online sales has not been fruitful; the company posted a 10% year-over-year drop in digital revenue. Furthermore, Nike, by the end of last year, had an inventory buildup of about $9.7 billion, forcing it to resort to discounts which while getting some excess out of inventory would squeeze the profit margins. Nielsen has been one of the great victims of business decisions Nike made to terminate its relationship with big retailers such as Urban Outfitters and Macy’s in 2021. While a few of these were restored in 2023, this does not change the fact that something went wrong. Another problem is that its sales channels have been stretched, complicated by poor showings in a critical revenue source for the company-the Chinese market.
Adidas’ victory in 2024
Contrasting to this, Adidas has proven to be a gold mine in the year 2024. The firm has seen continuous growth since its inception this year-more so through its retro sneakers models concerning its consumers’ attraction. Mid-April, Adidas came with a great earnings report that sent the firm’s stock from a marked level of around €202 to €226. Mid-July, the company came with an outlook that seemed optimistic, seeing a huge jump in the operating profits from €700 million to €1 billion that created an increased sense of confidence among investors.
In such regard, the stock in Adidas has risen 30.12% year to date to reach €237.10 through July 17. The capability of the brand for delivering considerable gain and exceeding expectations in the market itself puts the brand in a better position within the competitive marketplace for athletic apparel and footwear.
Investment opportunities and future
Reuters report suggests that Nike is a fascinating investment opportunity even at present. The shares are at five-year low prices with price earnings ratios standing at 19.1 times, thereby being potentially undervalued. It has a solid balance sheet and captures twice the revenue of the closest competitor Adidas. On the other hand, Adidas is an attractive instrument for investors with its perfect performance and positive outlook of profits. With 30.12% year-to-date gain in stocks, Adidas is one of the companies with gigantic growth prospects. Investors should consider strategic initiatives and market standings of both companies to estimate probable future investment options. In this situation, as Nike fights several severe issues, Adidas is more than prepared to cash in on the market trends and consumer preferences, making the brand a lucrative investment vehicle for any growth seeker in the year 2024.
The National Stock Exchange (NSE) and BSE will remain open on Monday.
August 19 is a working day for the Indian stock market and the trading will take place as usual throughout the day.
After a truncated week, the week starting from Monday is full of hopes among investors as the domestic stock market closed on a bullish note on Friday. Now, Monday is the festival of Raksha Bandhan. However, the Indian stock market, including the BSE and NSE, will remain open on August 19.
According to the BSE’s stock market holiday list, August 19 is a working day and the trading will take place as usual throughout the day. Now, the next holiday will be on October 2 on account of ‘Mahatma Gandhi Jayanti’.
Here’s the list of upcoming stock market holidays in India in 2024:
October 2: Mahatma Gandhi Jayanti
November 1: Diwali (Muhurat Trading will take place in the evening)
November 15: Guru Nanak Jayanti
December 25: Christmas.
What Factors Will Drive the Stock Market This Week
Friday’s rally in the stock market reversed all the last week’s losses, with both the Nifty and Sensex closing with gains of around 1 per cent. Throughout the week, the market was under pressure, driven by a ‘sell on rally’ structure due to concerns raised by the Hindenburg report, high valuations, and some disappointing earnings. However, global cues were strong last week. The fear of a reversal in the yen carry trade has eased, and robust retail sales figures, along with better-than-expected job data, have reduced concerns about a potential U.S. recession. Moreover, the market is now fully pricing in a 25 basis point rate cut by the U.S. Federal Reserve in September, further boosting investor confidence.
Foreign Institutional Investors (FIIs) turned net sellers in index futures last week. However, Friday’s trading session saw significant short-covering, bringing their long-short ratio to an even 50-50.
“This week, there are fewer cues on the macro and micro fronts, as the Q1 earnings season has concluded. However, important global economic data, such as Japan’s inflation numbers and the minutes from the U.S. Federal Open Market Committee (FOMC) meeting, will be closely watched. The uncertain geopolitical situation remains the primary near-term risk for the market,” Santosh Meena, head of research at Swastika Investmart.
Traders will also closely monitor institutional flows and crude oil price movements, he added.
“On the technical charts, Nifty has finally broken out of the consolidation range between the 50-DMA and 20-DMA, closing above the 20-DMA. This breakout could lead to further bullish momentum, with the 24,800-25,000 zone serving as a key resistance area. On the downside, the 20-DMA around 24,477 will act as immediate support, while the 24,200-24,000 zone remains a critical support area,” Meena said.
The Bank Nifty has established a base at the 100-DMA, but it needs to breach the 50,800-51,200 supply zone to trigger a significant short-covering rally. The 50,000-49,800 area has now become a crucial support zone, he added.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experi…Read More
New Delhi: Levelling fresh allegations against Sebi Chief Madhabi Puri Buch, US based short seller Hindenburg yet again trained guns at her again, asking if proper disclosures were made or not.
Hindenburg threw down the gauntlet, asking if the Sebi chief will publicly release the full list of consulting clients and details of the engagements, stating Madhabi Buch’s response to its report includes several important admissions and raises numerous new critical questions.
Hindenburg further goes on to allege that the fact that Madhabi Buch remained personally invested in the same funds by the sponsor she was tasked with investing, is a ‘massive conflict of interest’.
Questions have also been raised whether the Sebi Chief has recused herself in matters involving potential conflicts of interest?
Senior Advocate and Former Advocate General of SikkimVivek Kohli in a candid Q&A with Reema Sharma of Zee Media said, two aspects, amongst various other factors, require specific attention while considering a “conflict of interest” situation. The first is how current is the interest and the second is how proximate is the interest. Thus, while the first concerns the time axis, so to say, the second concerns the relationship axis.
Viewing the present controversy from either aspect would reveal that the allegations appear to be stretched, if not – as one would say – a long shot, said Kohli.
“In so far as the time axis is concerned, it appears from the information available that the alleged investments made by the Buchs in a fund based out of Mauritius pre-dated one of them taking up a public assignment. Further, even prior to taking the public assignment, in March of 2017 they withdrew Mrs. Buch’s name from the investment and subsequently, post taking up the assignment, decided to terminate the investment and redeem the investment. This appears to have occurred in 2018. Any alleged relationship ended in 2018. Much prior to the alleged market play, if any. Thus, on this count, the alleged “conflict of interest” allegation seems to be a little dated and stretched,” Kohli explained.
Coming to the second issue, the “relationship axis”. The reason for them to invest, in the particular fund they chose to invest in, also appears to be a logical one – where the Chief Investment Officer was a long standing friend and someone who enjoyed their confidence.
Kohli says, one of the key drivers in a financial investment is the confidence that the person managing the affairs of the investee inspires. It was not a random without cause investment. Further, the same person (CIO) has already stated, unequivocally, that no investment from this particular Fund (IPE Plus) was made in any Adani instruments of any nature. Thus, there was no direct or proximate relationship between the alleged investment made by the Buchs and any Adani entity. On this count too, the alleged “conflict of interest” allegation seems to be a little stretched.
“The entire basis of the allegations, that in some other fund managed by the concerned Financial Institution there is the possibility of some unexplained movement of funds, is remote from both, the time and relationship aspect as far as the Buchs are concerned.”
Meanwhile, Hindenburg in its tweet series asked if the Sebi chief will publicly release the full list of consulting clients and commit to a transparent or public investigation into these issues.
“Given this, will she publicly release the full list of consulting clients and details of the engagements, both through the offshore Singaporean consulting firm, the Indian consulting firm and any other entity she or her husband may have an interest in? Finally, will the SEBI Chairperson commit to a full, transparent and public investigation into these issues?,” it added.
Advocate Vivek Kohli has termed the report as Possibly the figment of a very active imagination and unworthy of the attention and time.
Mumbai: In a day marked by fluctuations, the stock market closed flat on Monday, despite Adani stocks rebounding after an initial dip. The BSE Sensex ended 56.98 points lower, settling at 79,648.92, while the NSE Nifty declined by 20.50 points to close at 24,347.00. Among the Nifty companies, 19 saw advances while 30 recorded declines.
Ajay Bagga, a banking and market expert said, “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.”
He added, “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.”
Varun Aggarwal, Founder and Managing Director of Profit Idea, noted, “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.”
He added, “Despite significant declines in Adani Group’s stock valuation following Hindenburg’s January 2023 report, partial recoveries have been noted. Buch and SEBI have responded by clarifying that Buch’s investments predate her tenure at SEBI, and the fund involved did not invest in Adani stocks. SEBI has concluded investigations into 23 of 24 issues, with six Adani companies receiving show cause notices.”
The market’s movements came in the wake of renewed concerns from the Hindenburg report over the weekend, which initially weighed down sentiment. However, the markets showed resilience, with buying interest emerging at lower levels, helping both frontline and broader indices to recover from their intraday lows.
Meanwhile, the Indian Rupee is expected to face slight weakening pressures due to a strengthening US Dollar and rising global crude oil prices. These factors are compounded by foreign selling pressures and ongoing geopolitical tensions in the Middle East.
However, positive global market trends may provide some support to the Rupee. Market participants will be closely watching 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 underscores the complex interplay of global geopolitical developments, domestic regulatory concerns, and investor sentiment in shaping the direction of Indian equities.
Adani Green and Ambuja Cements closed in green while other stocks of Adani Group closed marginally down after recovering from dips.
Notably, ONGC, Hero MotoCorp, Axis Bank, JSW Steel, and Divi’s Laboratories emerged as the top gainers. On the flip side, Adani Ports, NTPC, Dr Reddy’s Laboratories, Britannia, and Adani Enterprises were among the top losers, with Adani Group stocks showing a mixed performance after rebounding from an initial dip.
