Stock Market Performance Overview
Indian equities had a roller-coaster ride during this holiday-shortened trading week. SENSEX and NIFTY ended a long 7-week losing streak at an excellent 2% gain. The stars of the week were Friday’s stellar rally, powered by strong US jobs data, upbeat Asian markets, and recovery in Adani Group stocks.
Despite a dull opening on Monday, both indices gained over 2% on Friday. SENSEX went up by 2,060 points to close at 79,117.11, and NIFTY moved up 606 points to close at 23,907.25.
Market Drivers
FII Selling:
Continuous FII outflows had a bearish grip on the market throughout the week.
FII Selling:
Continuous FII outflows had a bearish grip on the market throughout the week.
Adani Scam:
The current allegations of bribery and fraud against the Adani Group resulted in the massive selloff of its stocks, which deleted quite significant market value.
Russia-Ukraine Tensions:
Growing geopolitical tensions were an add-on to the market volatility, as nuclear escalation fears were seen.
Weak Q2 Results:
Average earnings by many companies left the overall sentiment low.
Adani Scam:
The current allegations of bribery and fraud against the Adani Group resulted in the massive selloff of its stocks, which deleted quite significant market value.
Russia-Ukraine Tensions:
Growing geopolitical tensions were an add-on to the market volatility, as nuclear escalation fears were seen.
Weak Q2 Results:
Average earnings by many companies left the overall sentiment low.
Market Movements Day-by-Day
Monday:
The week opened in the negative in the markets. Heavy loss facing IT and pharma sectors with minor cushioning from metal and FMCG.
A short-covering spurt emerged as domestic investors took advantage of the bottom fishing. While the intraday 1% surge thwarted FII selling.
Thursday
The market sank to new depths as shares in the Adani Group plummeted following allegations of corruption and insider trading. Rising geopolitical tensions weighed in also.
Friday
A sensational rally lifted markets. Banks, oil, and IT sectors led the way along with a catch-up in Adani Group shares that turned around both indices into their best single-day gains since June 2024.
Sectoral and Broader Market Trends
Top Gainers:
NIFTY Realty: Up by 6% to emerge as the biggest sectoral gainer.
NIFTY Auto, IT, FMCG, and Financial Services: All up by 2%.
Top Losers:
Media and Oil & Gas ended the day in red.
Midcap and Smallcap Recovery:
Broader market indices gained up to 2%, reflecting a broad-based recovery.
Adani Group Stocks: From Slump to Rebound
The Adani Group suffered its worst trading day this week as allegations of bribery related to the payment of Indian officials for favorable terms in solar power projects have surfaced.
Performing Highlights
Adani Enterprises dived 23% on Thursday.
Adani Energy Solutions and Adani Ports & SEZ declined by around 20%.
Market valuation of all Adani companies declined by ₹2.3 lakh crore in a single day.
Friday Recovery:
Adani stocks recouped some losses following bargain hunting and positive sentiment as most closed higher.
Main Stock Stories of the Week
Waaree Energies:
Shares down 13% in three days after the company reported sequential decline in quarterly profits to ₹361.65 cr.
Honasa Consumer (Mamaearth):
The stock crashed 37% this week after a weak earnings report.
Paytm:
The stock jumped to near 52-week highs as it has gained 20% in the last five sessions.
Adani Enterprises, SBI Life, and BOCL
What’s Next?
In the next week, these are the events that will be watched by the investors:
Maharashtra Assembly Elections Results on 23 November: A good situation for the markets early in the week.
Geopolitical Developments: Russia-Ukraine will continue to affect global markets.
Sectoral Performance: Sectors like banking, IT, and auto will be watched for sectoral momentum.
Indian stock market resurfaces with a great recovery. Although geopolitical tensions and FII selling do keep plating their pressure upon sentiment, this drastic recovery on Friday and subsequent other aspects show possibilities of further gain. The key for the next trading week is to keep abreast and careful.
