Wednesday, March 22, 2023

Adani: Sensex reaches 5-month low, Adani companies break 10-day rally – Usky News



MUMBAI: The Sensex fell 0.6% or 338 points for the fourth consecutive session on Tuesday to end at a 5-month low of 57,900. The index has declined nearly 2,450 points or 4% in 4 sessions mainly due to fears of a rate hike in the US and the crisis led by failed US lender Silicon Valley Bank (SVB).
Aseloff rallied on Tuesday after wiping out $465 billion in global financial stocks in two days. US bank shares jumped on Tuesday as traders said the worst of the banking sector turmoil had passed, even as US President Joe Biden and other global policymakers sought to reassure markets that the contagion was over. There is no risk of A race to reassess interest rate expectations also weighed on markets as investors bet the US Federal Reserve would be reluctant to hike next week. European Bank shares fluctuated between gains and losses.
Selling in Indian stocks on Tuesday was led by foreign funds, which registered net outflows of Rs 3,087 crore, while domestic funds were net buyers to the tune of Rs 2,122 crore, BSE data showed.
For the first time in the current month, shares of all 10 Adani group companies also witnessed heavy selling and closed in deep red. After falling for more than a month until February 27, the conglomerate’s shares were on a northward journey for more than two weeks. on Tuesday, Adani The conglomerate saw its combined market capitalization shrink by around Rs 44,300 crore to below the Rs 9 lakh crore mark.
On January 24, US-based short-seller Hindenburg Research came out with a damning report, accusing the group of stock manipulation, accounting fraud and other corporate malpractices. Although the group denied all the allegations, the shares were falling since 25 January.
In more than a month after the publication of the report, the group had lost over 70% of its market value from Rs 19.2 lakh crore on January 24. Tuesday’s steep fall in Adani shares was led by flagship Adani Enterprises which fell to the 7th spot. 3%. Since the publication of the Hindenburg Report, the company has lost around 59% of its market value which is below the Rs 2 lakh crore mark.
On Tuesday, the rupee depreciated 36 paise to 82.49 against the dollar, underperforming a stronger greenback. The 0.4% fall in the rupee was the biggest decline in five weeks.

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