” Stock Market Recap: Nifty 50 Declines Amid Heavy Selling in Adani Stocks, Realty Shines”

Stock Market Snapshot: Nifty 50 Sees Heavy Selling, Led by Adani Group Stocks

The Indian stock market experienced significant selling pressure on the Nifty 50 index yesterday, leading to a subdued close. Despite minor recovery attempts during the day, the movement remained largely flat, with market sentiments weighed down by global cues and sector-specific developments. Here’s a detailed analysis of the day’s market action.

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Early Trading: Nifty Under Pressure

The Nifty 50 index faced intense selling pressure until 9:40 AM, driven primarily by a sharp decline in Adani group stocks, particularly Adani Enterprises and Adani Ports. While the index showed some resilience with a slight rebound later in the session, the overall recovery was insufficient to offset the early losses.

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Sectoral Performance: Mixed Sentiments

Top Performing Sectors:

• Realty: Realty stocks emerged as the best performers of the day, supported by optimism in urban development and infrastructure growth prospects.

Lagging Sectors:

• PSU Banks: Public sector bank stocks bore the brunt of the selling, registering the steepest losses among sectors, reflecting concerns over asset quality and market sentiment.

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Key Contributors: Top Gainers and Losers

Top Gainers:

1. Power Grid Corporation: ₹325.90 ▲ 3.44%
   Strong quarterly performance and investor interest pushed the stock higher.
2. UltraTech Cement: ₹10,954.85 ▲ 1.72%
   Optimism in the construction and infrastructure space benefited UltraTech.
3. Hindalco Industries: ₹648.05 ▲ 1.26%
   A positive outlook on metal demand contributed to gains.
4. Grasim Industries: ₹2,534.85 ▲ 1.06%
   Supported by its presence in key industrial segments.
5. HCL Technologies: ₹1,836.35 ▲ 0.87%
   Tech sector resilience kept the stock in the green.

Top Losers:

1. Adani Enterprises: ₹2,183.65 ▼ 22.61%
   Allegations of bribery against its chairman weighed heavily on the stock.
2. Adani Ports: ₹1,114.65 ▼ 13.57%
   The ripple effect from Adani Enterprises dragged Adani Ports lower.
3. SBI Life Insurance: ₹1,477.95 ▼ 2.95%
   Weak performance amid overall market negativity.
4. NTPC: ₹356.15 ▼ 2.88%
   Profit booking and muted investor interest impacted the stock.
5. SBI: ₹780.75 ▼ 2.77%
   Concerns over PSU bank performance led to a sharp decline.

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Global Market Overview

• US Markets: The US markets showed mixed trends, with the Dow Jones closing marginally higher at 43,408.47 (▲0.32%), while the Nasdaq dipped slightly to 18,966.14 (▼0.11%).
• European Markets: European equities rallied, benefiting from positive macroeconomic data.
• Asian Markets: Asian markets were under pressure, reflecting subdued investor sentiment in the region.

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Major Market News

Telecom Sector:

According to TRAI, India’s wireless subscribers fell by 0.87% in September. While BSNL gained 8.5 lakh subscribers, Jio, Vodafone-Idea, and Airtel reported significant subscriber losses.

Solar Energy Growth:

India’s solar installations rose 78% year-on-year in the July-September period, with the country’s total installed solar capacity now at 89.1 GW.

NTPC Green Energy IPO:

The IPO received a 0.93x subscription on Day 2, with strong interest from retail investors (subscription: 2.38x).

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Stock-Specific Updates

• Adani Enterprises: Denied bribery allegations by the US Department of Justice against its chairman Gautam Adani. The controversy spooked investors.
• Hyundai: Signed an agreement for solar and wind power projects in Tamil Nadu and acquired a 26% stake in the project for ₹38 crore.
• Tata Power: Partnered with the Asian Development Bank to finance a 966 MW solar-wind hybrid project worth $4.25 billion.

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Commodities and Currency

• Gold: ₹76,690 (▲1.36%)
• Silver: ₹90,460 (▲0.53%)
• USD-INR: ₹84.46/USD (▲0.06%)

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Long-Term Returns

• Sensex: ▲13.66% p.a. (20-year CAGR)
• Nifty 50: ▲13.39% p.a. (20-year CAGR)
• Dow Jones: ▲7.38% p.a. (20-year CAGR)
• Nasdaq: ▲11.71% p.a. (20-year CAGR)

The Nifty 50’s performance yesterday was marred by heavy selling in Adani group stocks and weakness in PSU banks, offset partially by gains in the realty sector. Global market trends and domestic macroeconomic factors will likely dictate market direction in the near term. Investors are advised to stay cautious and monitor developments in key sectors closely.

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