MUMBAI: Stock markets closed slightly lower on Monday after a highly volatile trading session.
Gains in private banks helped the benchmark Sensex recover some of the early losses triggered by allegations from US short-seller Hindenburg Research against SEBI chief Madhabi Puri Buch and her husband.
The 30-share Sensex ended the day down by 56.99 points, or 0.07 per cent, at 79,648.92, with 18 of its constituents posting losses and 12 registering gains.
Earlier in the day, the index had dropped by 479.78 points, or 0.60 per cent, to a low of 79,226.13, due to declines in Adani group shares and major stocks like Reliance Industries.
However, the benchmark staged a sharp recovery, climbing nearly 880 points from the day’s lows to reach a high of 80,106.18, before slipping back into negative territory at the close.
Nifty dips
The NSE Nifty also dipped by 20.50 points, or 0.08%, to 24,347, after hitting an intra-day low of 24,212.10 and a high of 24,472.80.
Vinod Nair, Head of Research at Geojit Financial Services, was quoted as saying, “The Indian market closed relatively flat, with its early trajectory overshadowed by the ongoing Adani-Hindenburg-SEBI controversy. However, the market attempted to move past these issues, drawing positive cues from global markets.”
Losers and gainers
Among the 30 Sensex firms, Adani Ports, NTPC, Power Grid, State Bank of India, Nestle, Mahindra & Mahindra, Reliance Industries, and Tata Consultancy Services were the biggest losers.
On the other hand, Axis Bank, Infosys, JSW Steel, Tata Motors, HDFC Bank, and Kotak Mahindra Bank were the top gainers among the blue-chip stocks.
The recent controversy stems from allegations by Hindenburg Research on Saturday, claiming that SEBI chairperson Madhabi Puri Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius.
These entities were allegedly used by Vinod Adani, the elder brother of Adani Group chairman Gautam Adani, to round-trip funds and inflate stock prices. Buch and her husband have issued a statement, calling Hindenburg’s accusations an attack on SEBI’s credibility and an attempt at “character assassination.”
Adani response
The Adani Group responded on Sunday, dismissing Hindenburg’s allegations as malicious and manipulative, asserting that it has no commercial relationship with the SEBI chairperson or her husband.
Despite the denial, all 10 Adani group stocks saw sharp declines in early trading, with Adani Energy Solutions falling by 17 per cent and Adani Total Gas dropping by 13.39 per cent. By the close, eight of the group’s companies ended lower, while two managed to recover.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “The Hindenburg allegations against a key official of the market regulator weighed on sentiment early on, but indices recovered to trade higher before giving up their gains and closing marginally lower due to selective profit-taking.
If the controversy escalates, it could further impact sentiment, though global cues will continue to play a significant role in shaping the broader market mood.”
In the broader market, the BSE small-cap index rose by 0.51 per cent, while the mid-cap index increased marginally by 0.04 per cent.
Among sectoral indices, utilities fell by 1.04 per cent, FMCG by 0.67 per cent, power by 0.62 per cent, and services by 0.41 per cent. Conversely, consumer durables, realty, oil & gas, metal, and IT sectors registered gains.
On the BSE, 2,126 stocks declined, 1,941 advanced, and 118 remained unchanged. In Asian markets, Seoul and Hong Kong ended in positive territory, while Shanghai closed lower. Markets in Tokyo and Bangkok were closed for a holiday.
European markets were mostly trading higher, and US markets ended higher on Friday.
FIIs net buyers
Foreign Institutional Investors (FIIs) turned net buyers on Friday after several days of selling, purchasing equities worth Rs406.72 crore, according to exchange data. Meanwhile, global oil benchmark Brent crude rose by 0.83 per cen% to $80.32 per barrel.
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