India Stocks: Indian shares snap losing streak as key Adani stocks cap losses

Sun Pharma Advanced Research

30/01/2023 10:24

(Updates closing levels)
       BENGALURU, Jan 30 (Reuters) - Indian shares struggled
for direction in a volatile session on Monday, ahead of the
Union budget, as select Adani stocks arrested the slide after a
short-seller attack on group companies triggered a sell-off over
the previous two sessions
    The Nifty 50 index  .NSEI  closed 0.25% higher at 17,648.95,
while the S&P BSE Sensex  .BSESN  rose 0.29% to 59,500.41. Both
the indexes swung between 0.6% gains and 1.1% losses during the
session before settling a notch higher.
    The move in the benchmarks tracked the intraday trajectory
of high-weightage financials  .NIFTYFIN , which rose 0.33% at
the close.  Financials had dragged the index over the previous
two sessions.
    Indian equities had tumbled to a three-month low on Friday,
dragged by a short-seller attack on Adani group companies, which
triggered a selloff in banks.
    The group faced a critical session today with the secondary
share sale of the flagship Adani Enterprises  ADEL.NS  seeing
only 2% subscription as of 3:33 p.m. IST on Monday. 
    "The markets will remain very volatile ahead of the budget,"
Aishvarya Dadheech, director and fund manager at Ambit Asset
Management said. The India volatility index  .NIFVIX  rose more
than 2% to 17.71 on Monday, marking a three-month high.
    Analysts also flagged fears of a drawdown in financials on
the back of a scathing report by Hindenburg Research that raised
concerns about the books of Adani companies. 
        Adani Enterprises rose as much as 10% before paring
gains to settle 4.76% higher while Adani Ports  APSE.NS  closed
little changed. ACC  ACC.NS  and Ambuja Cements  ABUJ.NS  also
advanced over 1% while the other group stocks corrected for the
third consecutive session.
        Twenty-nine of the Nifty 50 constituents advanced while
21 declined. Among individual stocks, Bajaj Finance  BJFN.NS 
rose over 4.5% after its third-quarter earnings beat estimates,
while Sun Pharma hovered near an eight-year high ahead of
third-quarter results.
        Foreign institutional investors sold 83.72 billion
rupees  ($1.03 billion) worth of shares over the last two
sessions since Hindenburg's report.
    Investors will shift focus to India's Union budget on Feb.
1, with the government's fiscal consolidation path and borrowing
calendar for the financial year 2024 as triggers.
    Besides the Union budget, analysts also said rate decisions
by global central banks and January automobile sales data would
determine the mood in the market.
    The U.S. Federal Reserve, European Central Bank and the Bank
of England are scheduled to announce their rate decisions, later
this week.
    ($1 = 81.6450 Indian rupees)
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India volatility index rises to highest since October    https://tmsnrt.rs/40eZvWg
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 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Dhanya Ann Thoppil)
 ((bharath.rajeswaran@thomsonreuters.com; Mobile:
+919769003463))