The benchmark indices started the week on a tepid note on Monday. The S&P BSE Sensex fell 590 points to quote at 58,741 level, while the Nifty50 dropped 149 points to 17,455 levels. Both the indices were down 0.99 per cent.
ICICI Bank, Axis Bank, L&T, HUL, HDFC, Tata Steel, JSW Steel, RIL, Power Grid, HDFC Bank, Hindalco, SBI Life, Apollo Hospitals, and Bharti Airtel were the top laggards on the Nifty50 index as they fell in the range of 1 per cent to 2 per cent.
In the broader market, the BSE MidCap and SmallCap indices declined up to 0.34 per cent. Meanwhile, among sectors, the Nifty Metal index was the top NSE gainer, up 1 per cent; while the Nifty Oil and Gas index was the top NSE loser, down 4 per cent.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Today the market will be completely dominated by the movements in Adani stocks. The statement from Adani Enterprises that the FPO is on schedule and that there is no change in the price band is hugely important. This can be interpreted as a reflection of the confidence of the management in the success of the FPO. It is important to understand that the stock has limited public float. So, the price crash on Friday happened mainly due to shorting Adani stocks in general and Adani Enterprises in particular. One possibility is a big short-squeeze in the stock. Huge volatility is in store in Adani stocks today. The sustained selling by FPIs in January with a massive sell figure of Rs 5978 crores last Friday is a bit intriguing. Did the FPIs get wind of the storm blowing now? It is important to note that during the last 3 days while Nifty declined by 3.2 %, Bank Nifty declined by 6.3% on concerns of the Adani crisis impacting the banks. The correction in high quality private sector banks is a buying opportunity. Investors may wait for the dust to settle."
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