BENGALURU: Indian shares struggled for direction on Thursday as the week-long rout in Adani Group stocks persisted, erasing $100 billion in market value and hurting sentiment.
The Nifty 50 index closed 0.03% lower at 17,610.40, while the S&P BSE Sensex rose 0.38% at 59,932.24. Thirty of the Nifty 50 constituents fell in a volatile session in which the index swung between 0.2% gains and 1% losses.
The difference in the performance between the two benchmarks is solely due to Adani group stocks. Two of the group companies -Adani Enterprises and Adani Ports NS> - are among Nifty 50 constituents, while both are not part of Sensex.
“The sell-off in Adani stocks has created panic in the markets,” said Siddhartha Khemka, head of research (retail) at Motilal Oswal Financial Services.
“Until the Adani saga settles down, there won’t be stability in market, especially from the retail investors’ perspective,” Khemka added.
Adani stocks extended their slide after the group decided to call off the $2.5 billion follow-on public offering, which was fully subscribed.
The stocks have been facing steep losses since the Hindenburg report on Jan. 24, which raised concerns over the group’s financials.
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