Stock Market: Tired US legs send jitters to Indian equities
By S Jha
New Delhi, February 6: The Indian equities continue to present the irony of falling with cut in the US equity market, and also falling even if their American counterparts rise. After posting strong gains last month, the US markets have gone into profit booking and consolidation modes, while the Indian bourses continue to slide lower.
The foreign institutional investors (FIIs) continue to short the Indian equity markets. They had a net sell of Rs 1218 crores. The domestic institutional investors poured in a net of Rs 1203 crores. With the Dalal Street missing to ride the Budget cues, the bourses are sliding lower, triggered by the accusations contained in the Hindenburg Report on the Adani Group of Companies. Now, the India In is in the last few days of announcing the third quarterly results, and that may deprive fresh triggers for the stock market to trend up.
While the wild swings were seen in the flagship Adani Enterprises, down by over eight per cent in the early session to recover fully by the close of the trade on Monday. Adani Ports, the cash cow in the stable of Gautam Adani, was higher by over nine per cent. The company which has major ports in India, Sri Lanka, Israel is witnessing buying interests at the lower value, suggesting value buying in the scrip. However, Adani Green, Adani Gas, Adani Transmission, Adani Wilmer and Adani Power were all locked in the lower circuits, with heavy pending sell orders.
On the other hand, the Indian equity market remained under pressure, with Sensex and Nifty down by 334 and 89 points respectively. None of the market leaders came forward to rescue the market. Metal and IT sectors were under pressure, as heavyweights among them such as Hindalco and Infosys traded with cuts on the bourses. Auto and banking sectors, which have been giving leadership to the market, were also under stress with the likes of Mahindra and Mahindra, Tata Motors, Maruti, HDFC Bank trading with cuts on Monday.
The telecom sector buzzed with the Bharti Infratel and Vodafone making handsome gains. Tejas Networks, the fresh acquisition by the Tata Group, reported its third quarter result and the company has posted profit with expanded revenue in the last three months. Tejas Networks had been underperforming the market for the past few months.
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