Indian shares logged gains on Friday, narrowing their weekly losses, as a bigger-than-expected drop in U.S. unemployment claims allayed fears of a recession in the world’s top economy. File.
| Photo Credit: ANI
Equity benchmark indices Sensex and Nifty declined in early trade on Monday (August 12, 2024), as investors turned cautious about the potential disruptions from the U.S. short-seller Hindenburg Research’s allegations that SEBI (Securities and Exchange Board of India ) chairperson and her husband’s undisclosed investments in obscure offshore funds in Bermuda and Mauritius.
The 30-share BSE Sensex declined 375.79 points to 79,330.12 in early trade. The NSE Nifty dropped 108.25 points to 24,259.25.
Of the 30 Sensex firms, Adani Ports, NTPC, Power Grid, State Bank of India, ICICI Bank and Titan were the biggest laggards.
All 10 Adani group stocks declined in early trade, with Adani Enterprises, Adani Green Energy, Adani Total Gas and Adani Power trading significantly lower.
Over the weekend, U.S.-based Hindenburg alleged that Madhabi Puri Buch, the head of SEBI, previously held investments in offshore funds also used by the Adani Group.
Ms. Buch denied the allegations and said all investments had been duly disclosed.
“In Friday’s (August 9, 2024) trade, Nifty staged a strong recovery following recent losses, marking a significant rebound. Despite the improved market sentiment, investors remain cautious about potential disruptions, especially with the looming Hindenburg Research report from the US,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Asian Paints, JSW Steel, Tata Motors and Maruti were among the gainers from the blue-chip pack.
In Asian markets, Seoul and Hong Kong were trading in the positive territory while Shanghai quoted lower.
The US markets ended higher on Friday.
“Domestically, there is the Hindenburg report and it’s likely to fall out. It appears that this “revelation” is unlikely to impact the market meaningfully,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
Foreign Institutional Investors (FIIs) turned buyers on Friday after days of offloading equities. They bought equities worth ₹406.72 crore, according to exchange data.
Global oil benchmark Brent crude climbed 0.10 per cent to $79.74 a barrel.
The BSE benchmark bounced back 819.69 points or 1.04% to settle at 79,705.91 on Friday. The NSE Nifty soared 250.50 points or 1.04% to 24,367.50.