Indian Benchmarks Open Marginally Lower; Adani Group Stocks Surge Post SEBI Decision

Market Update at 9:50 AM: India’s equity benchmarks opened marginally lower on Friday after a recent rally driven by a U.S. rate cut and progress in India-US trade talks. Market participants took a cautious stance despite strong gains in the last three sessions.

Shares of Adani group companies surged between 0.7 per cent and 11.3 per cent after the Securities and Exchange Board of India (SEBI) dismissed two charges levelled against billionaire Gautam Adani and his companies by U.S.-based short-seller Hindenburg Research. The regulator’s decision provided relief to investors and helped lift Large-Cap stocks in the group.

As of 09:15 a.m. IST, the Nifty 50 eased 0.04 per cent to 25,414.35, while the BSE Sensex fell 0.11 per cent to 82,919.72. The 50-stock index had gained 1.4 per cent and the Sensex rose 1.5 per cent over the last three sessions, boosted by optimism over the US rate cut and prospects of progress in trade talks.

Market breadth showed a mixed trend, with ten of the 16 major sectors opening higher. The broader indices, including Small-Cap and Mid-Cap stocks, traded largely flat, reflecting selective buying.

Pre-Market Update at 7:30 AM: Equity benchmark indices Sensex and Nifty 50 are expected to open on a cautious note on Friday, September 19, amid worries over US tariffs despite strong global cues. At 7:17 AM, the GIFT Nifty was trading near 25,473, down by 43 points.

India’s Chief Economic Adviser (CEA) V. Anantha Nageswaran said he expected a resolution to the tariff stand-off with the US within two months. He noted that Washington could roll back the additional 25 per cent tariff imposed on New Delhi for buying Russian oil. Meanwhile, SEBI cleared the Adani Group of allegations made by US short-seller Hindenburg Research, stating that fund transfers between group companies did not violate any regulations.

On Thursday, September 18, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth Rs 366.69 crore. Domestic Institutional Investors (DIIs) also bought shares worth Rs 3,326.56 crore. DIIs have been consistent net buyers for the past 18 consecutive trading sessions, supporting large-cap and mid-cap stocks.

On September 18, the Sensex and Nifty 50 extended their winning streak to three sessions after the US Federal Reserve cut its benchmark rate by 0.25 per cent and signalled the possibility of two more cuts this year. The Sensex rose 320 points (0.39 per cent) to 83,013.96, while the Nifty 50 gained 93 points (0.37 per cent) to 25,423.60. The BSE Midcap index added 0.36 per cent, while the Smallcap index closed flat.

US markets ended at record highs on Thursday, with the S&P 500 up 0.48 per cent to 6,631.96, the Nasdaq Composite up 0.94 per cent to 22,470.73, and the Dow Jones Industrial Average gaining 124 points (0.27 per cent) to 46,142.42. Investor sentiment improved after the Fed’s rate-cut signal, with smaller companies driving gains. In Asia, markets traded higher, while Japan reported a 2.7 per cent rise in August inflation, in line with expectations but slower than July’s 3.1 per cent.

In other global developments, US jobless claims fell by 33,000 to 231,000 for the week ending September 13. The Bank of England kept its interest rate steady at 4 per cent and slowed quantitative tightening, cutting gilt sales to £70 billion from £100 billion annually. Spot gold dipped 0.1 per cent to USD 3,638.75/oz. WTI crude hovered near USD 63.6 per barrel, while Brent traded around USD 67.5 per barrel, after US calls for lower prices tempered supply concerns.

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Disclaimer: The article is for informational purposes only and not investment advice.