After a few days of falling, both the Sensex of BSE and the Nifty 50 of NSE went up on Friday.
Experts think that what’s going on in the Adani Group is behind both the recent rise and the earlier drop. The Sensex started the day at 59,241.20 points (it ended Thursday at 58,909.35 points) and went up to 59,967.04 points and down to 59,231.58 points. At the end of the day, the Sensex was up 899.62 points, at 59,808.97.
In the same way, the Nifty 50 started at 17,451.25 points (it ended on Thursday at 17,321.90 points), went as high as 17,644.75 points, and as low as 17,427.70 points. The last number for the Nifty 50 was 17,594.35 points. Adani Enterprises and Adani Ports’ stocks did very well.
“After GQG Partners invested almost $2 billion in Adani Group, the stock market breathed a sigh of relief. Since a marquee investor bought Adani Group stocks at these prices, this created a sort of floor for those stocks. Also, the money raised through the transaction can be used by the promoters to put money into any group company that needs it. This can be done through warrants, rights issues, or other instruments “The Chief Investment Officer at Axis Securities, Naveen Kulkarni, said.
“This change will also make people feel better about the market and boost retail participation, which had been low because of uncertainty. The investment also makes people think that the Adani group’s stocks have reached a stable point and that they can raise money at current prices if they want to. This should help the banks, especially the PSU banks, which were hit hard before, even though they were doing well, because people were worried about their ties to the Adani group “he added.
Kulkarni thinks that the markets will bounce back in the short term because people are more optimistic. However, there are worries about global interest rates and higher valuations, which could lead to more volatility in the medium term.
“The market has been going down for a long time, but it is now making a big comeback, led by BankNifty. The mood on the market has changed because of the global market’s recovery and relief over the Adani case. This is causing a big move to cover short positions “The founder of Tradingo, Parth Nyati, said.
