Sensex gains 910pts as Adani stocks stabilise | India News

MUMBAI: Recovery in prices of some Adani stocks on the back of an assurance from the finance minister relating to LIC and SBI exposure to the group had a positive impact on Dalal Street investors. As a result, the sensex shot up by 910 points to 60,842. The day witnessed extreme volatility but, at the end of the session, it were the banking & financial stocks that contributed the most to the index’s gain.
The decision by the US Federal Reserve late on Wednesday to raise interest rate in the world’s largest market by a modest 25 basis points (100bps =1 percentage point) also helped sentiment, market players said. The European Central Bank, that raised the interest rate by 50bps, however, didn’t weigh on investor sentiment since the market was expecting a similar hike.

Next week, the RBI policyand how the Adani Group stocks behave will determine the overall trend of the market. According to Emkay Wealth Management head (research) Joseph Thomas, the market will look forward to the RBI policy due next week for indications on likely moderation in the stance, and with respect to the policy in relation to liquidity management. “While some amount of swings on either side are expected in the coming weeks,the markets would ultimately settle at levels dictated by the fundamentals,” he said.
On Friday, foreign funds continued to take money off Indian stocks with a net outflow of Rs 932 crore, while domestic institutions remained net buyers at Rs 1,265 crore, BSE data showed. HDFC Bank, HDFC and Bajaj Finance contributed the most to the sensex’s gains, while a lower closing in Tech Mahindra, Wipro and HCL Tech limited the same but only marginally.
The day’s strong gains in the market added about Rs 1 lakh crore to investors’ wealth with the BSE’s market capitalisation now at Rs 270 lakh crore. In the foreign exchange market, the rupee closed 34 paise stronger to the dollar at 81. 84. Market players said there were talks of heavy intervention by the central bank after the rupee weakened to below the 82-per-dollar mark on Thursday.