Today’s Market Summarised

The day of Adani madness in the market! In between the allegations and clarifications, Adani stocks swing 25% to either side in the day.

Nifty opened the day at 15,790 with a small gap-down and crashed down. The index fell to 15,600 in the first 20 minutes, then took support and shot back up. It was indeed a volatile day. Moving up, Nifty consolidated near Friday’s high and closed below it at 15,809, up 10 points or 0.06%.

Bank Nifty opened the day at 34,947 and fell just like Nifty. After a 550 point fall, the index reversed and started moving back up. It could not break the 35,000 mark even with the jump after 1:30 PM. Bank Nifty closed the day at 34,940, down 107 points or 0.31%

Most sectoral indices closed flat and in the red. Only Nifty Realty(-1.52%) closed with a more than 1% move. 

Asian markets closed mixed in the day. European markets are trading in the green with small gains currently.

News Picks

There were many reports that India’s NSDL froze 3 offshore accounts owning Adani shares. But with a press release at 3 PM, Adani Ports(-8.5%) said that no such accounts have been frozen and that the scandal is “causing irreparable loss of economic value to investors”.

Adani stocks were the highlight of the day with Adani Ent(-5.7%) gaining 25% from the day low. At the end of the day, all Adani stocks except Adani Power(-5%), ATGL(-5%) and Adani Transmission(-5%) had recovered from their lows.

Tata Motors closed the day at fresh-highs and as Nifty 50’s top-gainer.

Coal India closed 2% down ahead of its results announcement today.

BHEL fell 11.55% down after the company announced Q4 results. Many brokerages had given a sell call on the stock.

Malls and hotels will reopen in Pune from today even though the positivity rate is 11.11%

Laurus Labs promoter releases pledge 17 lakhs or 0.32% stake on 11th June. Stock closed 1.6% up. The stock is up 31% in the last month.

Indian Overseas Bank reported more than double Q4 standalone net profit at Rs 350 crores vs Rs 144 crores last year. Shares of the PSU Bank gained 1.6%.

ABB commissions digital platform integration for Sunflag Steel to enable better metals plant decision making. The stock closed 3.6% up in the day.

Formerly the managing editor with CNBC India, Udayan Mukherjee joins India Today Group. TV Today closed 5% up after the announcement.

DCM Shriram has scheduled a board meeting on June 29 to consider share split. The stock closed 2.8% up.

The drug firm Lupin has received a warning letter from the US health regulator for its Somerset facility in the US. Shares closed 3% down.

Trading of DHFL was stopped in NSE and BSE today. Any retailers trapped in these stocks will have seen their stocks disappear.

Markets Ahead

Nifty managed to recover from its morning shock and closed flat for the day. In fact, the index gained more than 10 points. If Adani Ports was flat, a gain of 23 points would have been seen in Nifty.

A day to remember anyway. Adani Ent and Adani Ports gained back up sharply from their lower circuits. The scandal surrounding Adani is yet to be over. We can expect more details and discussions soon. We will be writing an in-depth article for anyone still out of the loop regarding the issue.

India’s Wholesale Price Inflation hit an all-time high of 12.94% in the month of May. Still, this was better than the estimate of 13.40%, and the market moved up.

The sharp buying across the market at 1:20 PM shows that institutions are still bullish on our market. Still, we can only call today as net consolidation, as Nifty closed only 10 points up and could not cross Friday’s high. 

There could be a gap-up to a fresh all-time high tomorrow, with volatility to continue. Since the fundamentals of Adani companies are still unchanged, Bank stocks(lenders) will not see a huge effect.

And a further market-wide effect is not expected as Mutual Funds hold very little in Adani stocks.

Expecting for Bank Nifty to shake off the bearishness soon and IT to consolidate.

Catch you all on The Stock Market Show tonight!