Market Analysis Today [27th Nov 2024]

The Indian stock market ended on a positive note today, led by a strong performance in Adani Group stocks, which surged following a clarification on bribery allegations in the US. Broader indices also showed resilience, with gains across key sectors except IT, reflecting improved investor sentiment.

Key Indices Performance

• NIFTY 50: Closed at 24,274.90, up 80.40 points (+0.33%).
• SENSEX: Ended at 80,234.08, gaining 230.02 points (+0.29%).
• NIFTY BANK: Rose by 110.30 points (+0.21%) to close at 52,301.80.
• NIFTY IT: Declined by 67.25 points (-0.15%) to settle at 44,018.70.
• BSE SMALLCAP: Outperformed with a rise of 637.69 points (+1.18%), closing at 54,560.93.

Adani Group Stocks Drive Market Gains

Adani Group stocks were the highlight of the day, witnessing sharp rallies of up to 20% after Adani Green Energy issued a clarification regarding bribery allegations. The company clarified that Gautam Adani, Sagar Adani, and senior executive Vneet Jaain were not charged with violations of the US Foreign Corrupt Practices Act (FCPA), as confirmed by the US Department of Justice (DOJ).

However, the clarification did acknowledge the existence of charges related to securities fraud conspiracy, wire fraud conspiracy, and securities fraud. The news provided much-needed relief to investors, driving substantial gains in Adani Enterprises and Adani Ports.

Top Gainers

1. Adani Enterprises: Soared 11.50% to close at ₹2,397.80, on strong buying interest following the clarification.
2. Adani Ports: Gained 6.30%, ending at ₹1,199.95, supported by the positive sentiment surrounding Adani Group.
3. Bharat Electronics (BEL): Rose 3.17% to ₹307.35, continuing its upward trajectory amid strong order inflows.
4. Trent: Advanced 2.64% to ₹6,845.10, benefiting from robust consumer demand.
5. NTPC: Closed at ₹369.30, up 2.12%, backed by optimism in the energy sector.

Top Losers

1. Apollo Hospitals: Declined 1.33%, closing at ₹6,982.70, amid profit booking after recent gains.
2. Titan Company: Fell by 1.08% to ₹3,291.65, as investors opted to book profits.
3. Wipro: Dropped 1.04% to ₹582.90, mirroring weakness in the IT sector.
4. Shriram Finance: Ended at ₹3,019.00, down 0.90%, as part of sectoral rotation.
5. IndusInd Bank: Declined 0.76%, closing at ₹1,001.95, due to subdued sentiment in banking stocks.

Adani Stocks: Recovery or Opportunity?

The rebound in Adani stocks sparked discussions about whether the worst might be over for the group. Despite today’s gains, analysts remain cautious, citing concerns over recent credit downgrades by agencies like Fitch and Moody’s, as well as ongoing regulatory scrutiny. CA Jashan Arora, Wholetime Director & Promoter of Master Trust Group, remarked:

Whenever a rating agency downgrades a stock, investors may become concerned. Adani group stocks have been more volatile, particularly due to regulatory scrutiny and investors’ sentiments.

He advised investors to evaluate their risk tolerance, especially for short-term investments, while noting that the group’s long-term prospects remain robust.