Informist, Friday, Jan 27, 2023

By Maitri Seth 

MUMBAI – Equity indices were in the red today, hitting three-month lows on extensive selling of Adani Group stocks and sectors such as energy and oil and gas. Investors panicked over the ongoing Adani-Hindenburg controversy, which added to investor caution ahead of the Union Budget, said analysts.

"The allegations by Hindenburg on Adani Group have created widespread panic in the Indian markets, which created a spill-over effect on the banking space", said Siddharth Khemka, retail Research head, at Motilal Oswal Financial Services. 

Investors seemed worried about their stakes in the Indian conglomerate after the US short-seller Hindenburg Research accused the group of stock manipulation and fraud accounting in a recent report. Reports of further scrutiny from the Securities and Exchange Board of India also hit investor sentiment.  

Hence, shares of all Adani Group companies extended losses from Wednesday and closed 5-20% lower today. Adani Enterprises closed at 2,761.45 rupees today, significantly lower than its follow-on public offering price range of 3,112-3,276 rupees. Analysts termed this a concern, as investors were now more likely to refrain from subscribing to the follow-on offer when the price in the spot market was lower. 

Apart from the Adani-Hindenburg controversy, caution ahead of the Union Budget and the US Federal Reserve monetary policy meeting next week added to the persistent selling from foreign investors. The European Central Bank and Bank of England will also hold their policy meetings next week, and hence analysts believe that the next week is very crucial and hence the caution.

All these factors only intensified the persistent selling trend by foreign institutional investors, who have been cutting their stakes on account of China reopening its borders. The prevailing worry pushed fear gauge India VIX 18% higher today. 

Counting on such concerns, both the Nifty 50 and Sensex closed significantly below the psychologically-crucial support levels of 18000 points and 60000 points.

The Nifty 50 also breached its initial support of 17800 points, but managed to close above the crucial support of 17600 points. The Nifty 50 closed 1.6% lower at 17604.35 points, while the Sensex fell 1.5% to 59330.90 points. Among all the stocks on the Nifty 50, only 12 rose, 37 fell, and one remained unchanged.

Among the biggest laggards were the oil and gas and energy sectors, with both Nifty Oil & Gas and Nifty Energy each closing 5.6% lower today. Investors also sold shares in these sectors on account of the war between Ukraine and Russia. According to reports, the US and Germany will send 31 and 14 powerful battle tanks, respectively to Ukraine.

Metals and banks were the other affected sectors. The Nifty Metal and Nifty Bank ended 4.7% and 3% lower, respectively. Some dealers said banks fell aggressively after the Hindenburg report flagged concerns over the Adani Group's debt positions. "The allegations by Hindenburg on Adani Group created a spill-over effect on the banking space", Khemka added. 

Meanwhile, a report by brokerage CLSA said state-owned banks have "material exposure" to the Adani Group even though their lending to it has not increased significantly in the past three years. The three banking-related indices on the National Stock Exchange--Nifty Bank, Nifty Private Banks, and Nifty PSU Banks--were down 1-5%.

The automobile sector was among the gainers today. The Nifty Auto index rose 1% today. Amidst concerns, investors also switched to defensive buying which led to marginal gains in the pharmaceutical and healthcare sectors.  

The broader market also mirrored the benchmark indices, with all major indices closing 1.2-2% lower today.  

Among specific stocks, Dixon Technologies fell 10% as the company's Oct-Dec consolidated net profit missed analysts' estimates, while Tata Motors and Bajaj Motors ended 6% higher on strong results. 

* Among Nifty 50 stocks, 13 rose, 36 fell, and 1 unchanged

* Among Sensex stocks, 6 rose, 23 fell, and 1 unchanged

* On the BSE, 784 stocks rose, 2,783 fell, and 91 were unchanged

* On the NSE, 401 stocks rose, 1,913 fell, and 40 were unchanged

* Nifty Oil and Gas: Down 5.6%; Nifty PSU Bank: Down 5.43%; Nifty Pharma: Up 0.55% 

BSE                                             NSE
Sensex: 59330.90, down 874.16 pts 1.45%         Nifty 50: 17604.35, down 287.60 pts 1.61%

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 63583.07 (Dec 1, 2022)           :  Lifetime High: 18887.60 (Dec 1, 2022)
Record Close High: 63284.19 (Dec 1, 2022)       :  Record Close High: 18812.50 (Dec 1, 2022)

2023 1st day close: 61167.79 (Jan 2)            :  2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 61167.79 (Jan 2)             :  2023 Closing High: 18197.45 (Jan 2)

2023 Closing Low: 59900.37 (Jan 6)              :  2023 Closing Low: 17859.45 (Jan 6)

2023 High (intraday): 61222.79 (Jan 2)          :  2023 High (intraday): 18215.15 (Jan 2)

2023 Low (intraday): 59669.91 (Jan 6)           :  2023 Low (intraday): 17795.55 (Jan 6)

2022 1st day close: 59183.22 (Jan 3)            :  2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1)             :  2022 Closing High: 18812.50 (Dec 1) 
2022 Closing Low: 51360.42 (Jun 17)             :  2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1)          :  2022 High (intraday): 18887.60 (Dec 1)

2022 Low (intraday): 50921.22 (Jun 17)          :  2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)            :  2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)             :  2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)         :  2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)          :  2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)            :  2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)             :  2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)         :  2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)          :  2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)         :  2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)          :  2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))         :  2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)           :  2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)         :  2017 High(intraday): 10515.10 (Dec 26)

End

Edited by Aditya Sakorkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2023. All rights reserved.

Informist, Friday, Jan 27, 2023

By Maitri Seth 

MUMBAI – Equity indices were in the red today, hitting three-month lows on extensive selling of Adani Group stocks and sectors such as energy and oil and gas. Investors panicked over the ongoing Adani-Hindenburg controversy, which added to investor caution ahead of the Union Budget, said analysts.

"The allegations by Hindenburg on Adani Group have created widespread panic in the Indian markets, which created a spill-over effect on the banking space", said Siddharth Khemka, retail Research head, at Motilal Oswal Financial Services. 

Investors seemed worried about their stakes in the Indian conglomerate after the US short-seller Hindenburg Research accused the group of stock manipulation and fraud accounting in a recent report. Reports of further scrutiny from the Securities and Exchange Board of India also hit investor sentiment.  

Hence, shares of all Adani Group companies extended losses from Wednesday and closed 5-20% lower today. Adani Enterprises closed at 2,761.45 rupees today, significantly lower than its follow-on public offering price range of 3,112-3,276 rupees. Analysts termed this a concern, as investors were now more likely to refrain from subscribing to the follow-on offer when the price in the spot market was lower. 

Apart from the Adani-Hindenburg controversy, caution ahead of the Union Budget and the US Federal Reserve monetary policy meeting next week added to the persistent selling from foreign investors. The European Central Bank and Bank of England will also hold their policy meetings next week, and hence analysts believe that the next week is very crucial and hence the caution.

All these factors only intensified the persistent selling trend by foreign institutional investors, who have been cutting their stakes on account of China reopening its borders. The prevailing worry pushed fear gauge India VIX 18% higher today. 

Counting on such concerns, both the Nifty 50 and Sensex closed significantly below the psychologically-crucial support levels of 18000 points and 60000 points.

The Nifty 50 also breached its initial support of 17800 points, but managed to close above the crucial support of 17600 points. The Nifty 50 closed 1.6% lower at 17604.35 points, while the Sensex fell 1.5% to 59330.90 points. Among all the stocks on the Nifty 50, only 12 rose, 37 fell, and one remained unchanged.

Among the biggest laggards were the oil and gas and energy sectors, with both Nifty Oil & Gas and Nifty Energy each closing 5.6% lower today. Investors also sold shares in these sectors on account of the war between Ukraine and Russia. According to reports, the US and Germany will send 31 and 14 powerful battle tanks, respectively to Ukraine.

Metals and banks were the other affected sectors. The Nifty Metal and Nifty Bank ended 4.7% and 3% lower, respectively. Some dealers said banks fell aggressively after the Hindenburg report flagged concerns over the Adani Group's debt positions. "The allegations by Hindenburg on Adani Group created a spill-over effect on the banking space", Khemka added. 

Meanwhile, a report by brokerage CLSA said state-owned banks have "material exposure" to the Adani Group even though their lending to it has not increased significantly in the past three years. The three banking-related indices on the National Stock Exchange--Nifty Bank, Nifty Private Banks, and Nifty PSU Banks--were down 1-5%.

The automobile sector was among the gainers today. The Nifty Auto index rose 1% today. Amidst concerns, investors also switched to defensive buying which led to marginal gains in the pharmaceutical and healthcare sectors.  

The broader market also mirrored the benchmark indices, with all major indices closing 1.2-2% lower today.  

Among specific stocks, Dixon Technologies fell 10% as the company's Oct-Dec consolidated net profit missed analysts' estimates, while Tata Motors and Bajaj Motors ended 6% higher on strong results. 

* Among Nifty 50 stocks, 13 rose, 36 fell, and 1 unchanged

* Among Sensex stocks, 6 rose, 23 fell, and 1 unchanged

* On the BSE, 784 stocks rose, 2,783 fell, and 91 were unchanged

* On the NSE, 401 stocks rose, 1,913 fell, and 40 were unchanged

* Nifty Oil and Gas: Down 5.6%; Nifty PSU Bank: Down 5.43%; Nifty Pharma: Up 0.55% 

BSE                                             NSE
Sensex: 59330.90, down 874.16 pts 1.45%         Nifty 50: 17604.35, down 287.60 pts 1.61%

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 63583.07 (Dec 1, 2022)           :  Lifetime High: 18887.60 (Dec 1, 2022)
Record Close High: 63284.19 (Dec 1, 2022)       :  Record Close High: 18812.50 (Dec 1, 2022)

2023 1st day close: 61167.79 (Jan 2)            :  2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 61167.79 (Jan 2)             :  2023 Closing High: 18197.45 (Jan 2)

2023 Closing Low: 59900.37 (Jan 6)              :  2023 Closing Low: 17859.45 (Jan 6)

2023 High (intraday): 61222.79 (Jan 2)          :  2023 High (intraday): 18215.15 (Jan 2)

2023 Low (intraday): 59669.91 (Jan 6)           :  2023 Low (intraday): 17795.55 (Jan 6)

2022 1st day close: 59183.22 (Jan 3)            :  2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1)             :  2022 Closing High: 18812.50 (Dec 1) 
2022 Closing Low: 51360.42 (Jun 17)             :  2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1)          :  2022 High (intraday): 18887.60 (Dec 1)

2022 Low (intraday): 50921.22 (Jun 17)          :  2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)            :  2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)             :  2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)         :  2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)          :  2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)            :  2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)             :  2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)         :  2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)          :  2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)         :  2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)          :  2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))         :  2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)           :  2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)         :  2017 High(intraday): 10515.10 (Dec 26)

End

Edited by Aditya Sakorkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2023. All rights reserved.