The Indian equity market witnessed sharp declines during mid-morning trade, weighed down by selling pressure across sectors.
The Nifty 50 slipped below the 23,350 mark, reflecting subdued market sentiment, while metal stocks led the losses for the second consecutive session. Market volatility was heightened due to the weekly Futures and Options expiry.
As of 01:08 PM IST, the S&P BSE Sensex was trading at 77,102.97, down by 475 points or 0.61%. The Nifty 50 followed suit, dropping 177.60 points or 0.75% to 23,340.95.
Broader Market Insights
While the benchmark indices faced sharp losses, broader market indices displayed relatively moderate declines. The S&P BSE Mid-Cap index slipped by 0.20%, and the S&P BSE Small-Cap index fell by 0.57%.
Market breadth remained weak, with 1,089 stocks advancing against 2,685 declining on the BSE, while 141 stocks remained unchanged.
Metal Sector in Focus
Metal shares continued their downward trend, with the Nifty Metal index tumbling 2.05% to 8,737.70. This marked a cumulative decline of 2.87% over the past two sessions.
Prominent losers included Adani Enterprises, which plunged by 22.26%, and Jindal Stainless, which fell 3.94%. Other significant decliners were APL Apollo Tubes, NMDC, and Welspun Corp.
Despite the overall weakness, select stocks in the metal sector exhibited resilience. National Aluminium Company surged 3.85%, Ratnamani Metals & Tubes gained 2.62%, and Hindalco Industries added 1.35%, providing some stability to the sector.
NTPC Green Energy IPO Update
The NTPC Green Energy IPO continued to generate interest, particularly among retail investors, who oversubscribed their allotted portion on the first day of bidding.
By Day 2, the IPO secured Rs 3,960 crore from anchor investors, reflecting robust pre-launch demand.
On Day 1, the IPO achieved a subscription rate of 33%. Retail investors oversubscribed their portion by 1.33 times, while the NII segment recorded a 16% subscription.
Employee and shareholder categories saw 17% and 57% subscription, respectively. However, the QIBs segment reported no bids on the opening day.
The Rs 10,000 crore IPO is composed entirely of new equity shares, with Rs 7,500 crore earmarked for the repayment or prepayment of loans by NTPC Renewable Energy Ltd.
The remaining proceeds are allocated for general corporate purposes. As a Maharatna company, NTPC Green Energy plays a critical role in India’s renewable energy sector, developing solar and wind power projects across six states.
Adani Group Stocks in Turmoil
Adani Enterprises plummeted 23% during Thursday’s trade, hitting an intraday low of Rs 2,171.60 before stabilizing. As of the last update, the stock was down 20.23% at Rs 2,249.80. The sharp decline marked a 27.79% drop in the stock’s value over the past six months.
The selloff came in the wake of fraud and bribery allegations against Gautam Adani and other senior officials within the group, as reported by U.S. authorities.
The charges include accusations of paying bribes to Indian government officials to secure contracts expected to generate $2 billion in profits over two decades and establishing India’s largest solar power plant project.
In light of these developments, Adani Group subsidiaries postponed their proposed USD-denominated bond offerings.
The allegations, combined with ongoing scrutiny from the Hindenburg Research report, have intensified pressure on the conglomerate.
Corporate Updates
Among other notable corporate developments:
- NBCC (India) declined 1.79% after announcing a Rs 202 crore project award from Rajasthan State Industrial Development & Investment Corporation (RIICO).
- Bharat Global Developers hit the 5% upper circuit after its Dubai-based subsidiary secured an order worth Rs 251 crore.
Global Market Sentiment
Global cues contributed to the cautious sentiment, with Asian markets showing mixed trends. Investor concerns were fueled by Nvidia’s subdued earnings guidance and ongoing geopolitical tensions related to the Russia-Ukraine conflict.
In the U.S., markets closed with a mixed performance. The Dow Jones Industrial Average rose 0.32%, while the S&P 500 remained flat, and the NASDAQ Composite fell 0.11%.
Target’s disappointing September-quarter earnings triggered a 22% slump in its stock, raising fears of a potential retail spending slowdown. Nvidia also dropped over 1% in aftermarket trading despite reporting better-than-expected earnings.
Investors now await critical U.S. economic data, including jobless claims, home sales, and PMI figures, alongside statements from Federal Reserve officials that could shape expectations for future monetary policy.
Disclaimer – This article is for informational purposes only and does not constitute financial or legal advice. MarketScope Daily is not SEBI-registered and does not endorse specific investments. Readers should conduct their own research or consult a licensed advisor before making financial decisions
