BENGALURU: Indian shares declined after a volatile opening on Tuesday, the final day of Adani Enterprises’ mega secondary share sale and ahead of the country’s annual pre-budget economic survey. The Nifty 50 index was down 0.45% at 17,569.40 as of 9:48 a.m. IST, while the S&P BSE Sensex fell 0.46% to 59,229.62.

The benchmarks swung between gains of 0.5% and losses of 0.5% in early trade before moving lower, once again dragged down by the heavyweight financials.

The index fell 0.4%, continuing its drop in the wake of the short-seller report on Adani Group stocks. While most of the Adani Group stocks resumed their slide, once again the flagship Adani Enterprises rose 1.73% on the last day of its crucial $2.5 billion follow-on share offering.

The group’s seven listed companies have lost $65 billion in market value since U.S-based Hindenburg Research flagged concerns about the groups’ debt levels and the use of tax havens, charges the conglomerate has denied.

India’s annual pre-budget economic survey is due later in the day, in which the government is likely to peg GDP growth at 6-6.8% for 2023-24, the slowest in three years, Reuters reported. That will put added focus on the government’s fiscal consolidation path and borrowing calendar for fiscal 2024 at the Union budget on Feb. 1.

Traders will also watch the budget for any incentives to entice foreign investors, who have piled out of the market, especially since the report on Adani Group on Wednesday.

Indian shares snap losing streak as key Adani stocks cap losses

Foreign institutional investors have sold 151.65 billion rupees ($1.86 billion) worth of shares on a net basis in the past three sessions. Later that day, the focus will shift to the US Federal Reserve’s decision on future monetary policy, which is key for Indian firms, especially IT companies, that have major exposure to the United States.

Among individual stocks, Bharat Petroleum jumped over 4% and was the top Nifty 50 gainer after reporting third-quarter results.