Sensex, Nifty end higher as Adani stocks rally up to 20%

Benchmark stock market indices closed higher on Wednesday as they made a brief rally driven by a surge in Adani group shares after the conglomerate issued a clarification on the bribery charges by US authorities.
“This recovery followed a clarification from Adani Green Energy Ltd (AGEL) regarding recent allegations of bribery and corruption against key executives, including Gautam Adani and his nephew Sagar Adani,” said Vaibhav Vidwani, Research Analyst, Bonanza.
The S&P BSE Sensex added 230.02 points to close at 80,234.08, while the NSE NIfty50 gained 82.20 points to end at 24,276.70.
Adani Green Energy shares ended the day at Rs 988.40, up 10%. Shares of Adani Power Ltd surged 20% to Rs 525.15, while Adani Enterprises Ltd gained 11.56% to close at Rs 2,399.00.
CA Jashan Arora, Wholetime Director & Promoter, Master Trust Group, said that the Adani group stocks have been more volatile particularly due to regulatory scrutiny and investor’s sentiments.
Other Adani group stocks also showed positive momentum. Adani Total Gas Ltd rose 20% to Rs 695.30, Adani Wilmar Ltd increased 8.27% to Rs 314.60, and Adani Ports and Special Economic Zone posted a gain of 5.90%, rising to Rs 1,195.50 per share.
“The forecast for the foreseeable future is still unclear. Before making any investment decisions, investors are encouraged to keep a careful eye on court cases and assess the group’s financial standing. Think about your risk tolerance if you plan to stay in the short term. It might be appropriate to minimise exposure or to book losses if the downgrade has drastically affected your risk-reward ratio. Long-term prospects for the company remain strong, therefore it could be worthwhile to invest in this downturn. Make sure, though, that this fits your risk tolerance and investment approach,” he added.
Stocks that saw a decline in the day were Apollo Hospitals, Titan, Wipro, Shriram Finnace, and Hindalco.
10 of the 16 sectoral indices ended the day in green with Nifty Media and metal stocks leading the gains.
In today’s trading session, the broader market indices displayed a mixed performance as the Nifty Smallcap100 index showed strength, climbing 1.30%, while the Nifty Midcap100 index posted a gain of 0.64%. The India VIX, which measures market volatility, saw an increase of 5.21%, indicating a rise in investor uncertainty.
Vinod Nair, Head of Research, Geojit Financial Services said that Indian indices continue to exhibit positive upside as a result of healthy consolidation and the likelihood of strong H2FY25 earnings forecasts.
“In Asia, market sentiment was mixed due to the potential tariff impositions by the US. Meanwhile, the Chinese market rebounded on expectations of additional stimulus measures. The global sentiment is positive as the US FOMC minutes and a truce in the Middle East were optimistic. Decelerating inflation and robust growth prospects could lead to continued rate cuts by the Federal Reserve,” he added.
Ajit Mishra – SVP, Research, Religare Broking Ltd, said that in this environment, traders should prioritize prudent stock selection and effective trade management.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)