Adani shares cracked the Indian stock market

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Adani shares cracked the Indian stock market

Indian shares left record highs they reached in the previous session. Adani Group equities weighed them down. 

The Blue-chip NSE Nifty 50 index shrank by 0.24% to 15,762.60. Meanwhile, the S&P SENSEX decreased by 0.13% to 52,396.98.

Adani Group shares started the trading day sharply lower. It followed the Economic Times report about the National Securities Depository Ltd freezing the accounts of three foreign funds. They have an investment worth 435 billion rupees in Adani group companies.

Adani Enterprises plunged by 25%, Adani Ports lost 17%, Adani Total Gas dropped by 5%. Meanwhile, Adani Green Energy decreased by 5%. Adani Power yielded 5%, and Adani Transmission dropped by 5%.

The most significant increases were posted by companies Godawari Power and Ispat, which surged by 20%. Marksans Pharma followed it with a raise of 13%. 

 

Coronavirus cases dropped to a two month low

As for the coronavirus, the number of fresh cases dropped to the lowest figure in more than two months in the country. As a result, many states eased covid-19 restrictions today. In Delhi, the capital, all the shops and malls opened. 

V K Vijayakumar, a chief investment strategist, believes that progressive unlocking will clear the way for economic recovery. However, investors should be cautious and choose high-quality stocks over small caps.

Investors are looking forward to Consumer Price Index-based inflation data later today. Siddhartha Khemka, the head of retail research, Motilal Oswal Financial Services, stated that the next direction of the domestic market depends on the economic reopening and the speed of vaccination. 

Bus services will reopen, and states ease more restrictions on June 21. So, analysts expect a recovery in demand which could positively influence the stock markets. 

According to analysts, the Nifty may face resistance around 15,850-15,900 zone. Meanwhile, support lies between the 15,750 and 15,650 range. 

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