Closing Bell: Sensex, Nifty, Bank Nifty tank as street gets nervous on Hindenburg report; Adani Enterprises crashes 18%

Closing Bell: Indian frontline indices S&P BSE Sensex and NSE Nifty50 hit 3 month lows on Friday as a fallout of the Hindenburg Research report on the Adani Group companies. While BSE ended at 59,330.90, down 874.16 points or 1.45 per cent, the broader market Nifty50 settled at 17,604.35, lower by 287.60 points or 1.61 per cent. Banking gauge Nifty Bank tanked 1,302 points or over 3 per cent to finish at 40,345.30.

In the 50-stock Nifty50, 12 stocks gained, 37 declined and 1 remained unchanged. The top gainers were Tata Motors, Bajaj Auto, Dr Reddy's Laboratories, ITC and Cipla while the top losers were Adani Enterprises, Adani Ports, State Bank of India (SBI), ICICI Bank and Indusind Bank.

The domestic markets were mired by high volatility. India VIX, a measure of volatility in Nifty50 settled at 17.32 up 18.18 per cent.

The Adani Enterprises  shares have fallen below the FPO price and concerns are now emerging if the Rs 20,000 crore FPO will get fully subscribed or not. 

Source: NSE

Source: NSE

Out of 15 sectoral indices, 11 closed in the red. The worst performing indices were Nifty PSU Bank (-5.43 per cent), Nifty Metal (-4.69 per cent) and Nifty Bank (-3.13 per cent) and Nifty Oil & Gas (-5.60 per cent). The top performers were Nifty Auto (+1 per cent), Nifty Pharma (+0.55 per cent) and Nifty Healthcare Index (+0.51 per cent). 

Source: NSE

Selling pressure was seen even in the broader markets. Nifty MId Cap 100 settled at 30,241.90, down by 452.40 or 1.47 per cent. In the 100-share index, advances were seen in 20 stocks, declines in 79 while one remained unchanged. The top gainers were Max Healthcare Institute, Emami Limited, Tube Investments of India while the top losers were Dixon Technologies, Hindustan Petroleum and Bank of India.

Meanwhile, in Nifty Small Cap 100 index, onlt 23 stocks gained against 77 losers. The index fell by 178.25 points or 1.89 per cent to close at 9,242.70. The top gainers were PVR, Medplus Health and Amararaja Batteries while the top losers were IRB Infrastructure, Quess Corp and Renuka Sugars.

Rupee gains 8 paise to close at 81.53 (provisional) against US dollar, PTI reported.

The rupee traded in a small zone of 81.48-81.65 as share markets fell by about 2 per cent on account of concerns relating to Adani Group of companies which drowned other shares also, Anil Kumar Bhansali, Head of Treasury Finrex  Treasury Advisors LLP said. "Dollar Index was ranged as where Asian currencies, oil and Gold. With currencies generally  stronger against USD rupee has not weakened much despite the fall in stock markets. Possibly due to Bank strikes on 30/31st we may be seeing some selling on dollar rupee," Bhansali said. He sees the range for Monday to be between 81.20 to 82.00.

Expert Take

 "The Nifty started the week on a positive note however witnessed steep selling pressure in the second half of the week. As a result, it broke down from the consolidation range, which it was witnessing for the last one month. It broke the support zone of 17800-17760, which will now act as a resistance as per the principle of role reversal. On the downside, the Nifty has halted near the 61.8% retracement of the Sept – Dec 2022 rise & 200 DEMA, which are near 17550. Today’s low of 17493 will be a key support. If that is breached then the decline can continue till 17300." -- Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas​ 

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)