Market Commentary - Mid-Session
Indices trade with substantial losses; Adani Ent drops over 19% As on : 21-Nov-24  13:32

The key equity benchmarks continued to trade with moderate losses in the afternoon trade. The Nifty hovered below the 23,350 mark. Realty and private bank shares advanced while PSU bank, media and metal stocks corrected. Trading could be volatile due to the weekly F&O series expiry today.

At 13:28 IST, the barometer index, the S&P BSE Sensex, declined 433.15 points or 0.56% to 77,145.23. The Nifty 50 index lost 170.30 points or 0.72% to 23,348.20.

In the broader market, the S&P BSE Mid-Cap index shed 0.15% and the S&P BSE Small-Cap index fell 0.52%.

The market breadth was weak. On the BSE, 1,160 shares rose and 2,740 shares fell. A total of 114 shares were unchanged.

Gainer & Losers:

Power Grid Corporation of India (up 2.35%), Grasim Industries (up 1.65%), Tata Steel (up 1.43%), Hindalco Industries (up 1.26%) and Ultratech Cement (up 1.12%) were major Nifty gainers.

Adani Enterprises (down 19.22%), Adani Ports and Special Economic Zone (down 12.84%), SBI Life Insurance Company (down 2.95%), State Bank of India (down 2.74%) and NTPC (down 2.59%) were major Nifty losers.

Stocks in Spotlight:

Shares of ten Adani group stocks fell by 6% to 20% after U.S. indicted billionaire Gautam Adani and associates for a massive $250 million bribery scandal linked to solar energy projects.

Adani Energy Solutions (down 20%), Adani Enterprises (down 18.10%), Adani Green Energy (down 16.05%), Adani Ports and Special Economic Zone (down 11.41%), NDTV (down 10.19%), Adani Wilmar (down 10%), Adani Total Gas (down 9.84%), Ambuja Cements (down 9.29%), Adani Power (down 8.09%) and ACC (down 6.65%) slump.

Britannia Industries slipped 2.56% after the company informed that it has received a notice from the Food Safety and Standards Authority of India (FSSAI) to prohibit the sale of one batch of its product.

Dr Reddy's Laboratories (DRL) declined 1.50% after the company informed that on Tuesday, 19 November 2024, US Food and Drug Administration (USFDA) completed its Good manufacturing practice (GMP) inspection at API manufacturing facility located in Bollaram, Hyderabad.

NBCC (India) shed 1.42%. The company said that it has bagged a contract worth Rs 202 crore from Rajasthan State Industrial Development & Investment Corporation (RIICO).

Bharat Global Developers was locked in upper circuit of 5% after the company's Dubai-based wholly-owned subsidiary received orders for processing and supplying worth Rs 251 crore.

Global Markets:

European and Asian stocks declined on Thursday, dampened by mixed signals from Nvidia's earnings report and heightened geopolitical tensions. Investors remained cautious, with concerns over Russia-Ukraine conflict weighing on sentiment.

U.S. stocks closed mixed on Wednesday, with Target's disappointing earnings and Nvidia's tempered guidance impacting investor sentiment. While the Dow Jones Industrial Average gained 0.32%, the S&P 500 index ended flat%, and the NASDAQ Composite index fell 0.11%.

Investors were rattled by a nearly 22% slide in Target after the retailer missed expectations for its September quarter earnings. Target steadied in evening trade, although its earnings also raised some questions over weakening retail spending.

Nvidia shares fell more than 1% in aftermarket trade to around $144.0, trimming some losses after falling as much as 2% just after its earnings. Earnings per share rose to $0.81 on revenue of $35.1 billion, higher than expectations of $0.75 in EPS and $33.09 billion in revenue.

Nvidia's quarterly results, while exceeding expectations, fell short of some analysts' hopes for a more significant beat. The company's guidance for the fourth quarter, though slightly above estimates, hinted at a slower pace of revenue growth, raising questions about the sustainability of AI-driven demand. This cautious outlook tempered investor enthusiasm and contributed to the broader market's subdued performance.

Market participants are now focused on a series of U.S. economic indicators, including jobless claims, home sales data, and the Purchasing Managers' Index (PMI). Additionally, several Federal Reserve officials are scheduled to speak, providing insights into the central bank's monetary policy outlook.

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