Tuesday saw no change in India’s blue-chip indices as a decrease in information technology (IT) firms following a recent surge was countered by an increase in Adani and energy sectors.
Out of the thirteen sectors, nine had gains. Due to a rise in Adani Enterprises, which is weighted 16.43% on the index, metals saw a 1.1% increase.
The top Nifty 50 gainers were Adani Enterprises, which increased by 7%, and Adani Ports and Special Economic Zone, which increased by 3.6%.
On the day, all of the Adani group’s equities increased by 3% to 15%. In a series of petitions seeking court-monitored inquiries into claims made by short seller Hindenburg Research against the group—which it has denied—the Supreme Court on Friday deferred its decision.
Securities and Exchange Board of India, a market regulator (SEBI)
declared
that it wouldn’t ask for a further time to finish the investigation of the Adani group on Friday.
“Markets believe that nothing materially negative has been found against the group by market regulator SEBI in its probe on the Hindenburg allegations,” explained Profitmart Securities head of research Avinash Gorakshakar. “This is why Adani group stocks have jumped.”
“But one cannot be sure how sustainable is this sharp jump seen today,” said Gorakshakar.
A little decrease in oil prices to around $80 per barrel ahead of a meeting of the Organisation of Petroleum Exporting Countries (OPEC) and its allies on November 30 saw energy, oil and petrol prices rise by almost 1% apiece.
Reduced oil prices are advantageous to the commodity’s importers, such as India and its oil marketing businesses.
IT shares dropped by 0.6% on Tuesday. In the week ending Nov. 17, they surged 5.07% as expectations of a stop to rate rises were bolstered by weak U.S. inflation statistics.
It dropped 0.42% last week.