Bank Stocks Lead as Adani Group Concerns Ease, Markets Soar 1.5%

Bank Stocks Lead as Adani Group Concerns Ease, Markets Soar 1.5%

Adani Group Stocks Soar Following US Investment

On Friday, the Adani Group’s flagship company, Adani Enterprises, saw its stock gain by 17%, propelling the entire group to record gains. This came a day after US-based investment firm GQG Partners invested $1.87 billion in four Adani companies, easing investor concerns.

India’s benchmark indices experienced their best day in almost four months, with the Sensex rising 900 points or 1.53%, and the Nifty50 index settling at 17,594, up 272 points or 1.57%. The Bank Nifty index increased by 2.1%, while the Nifty PSU Bank index rose by 5.4%. This rally was supported by positive global cues, including optimistic economic data and less hawkish statements from the Federal Reserve.

The expansion of the services sector also contributed to positive sentiment, with the S&P Global India Services Purchasing Managers’ Index reaching its highest level since February 2011. Foreign Portfolio Investors purchased shares worth Rs 246 crore, according to provisional data from the exchanges, and the market breadth was positive.

Vinod Nair, head of research at Geojit Financial Services, stated that “the market had more reasons to cheer today than to worry about concerns regarding inflation. PSU Banks led the sectoral rally as reports of foreign investments in Adani stocks helped the sector in recouping the dampened sentiments.”

Andrew Holland, CEO of Avendus Capital Alternate Strategies, noted that the market is likely to remain optimistic and will continue to experience bouts of sectoral rotation ahead of the Federal Reserve meeting.

About Adani Group:

Adani Group is an Indian multinational conglomerate, headquartered in Ahmedabad. It was founded by Gautam Adani in 1988 as a commodity trading business, with the flagship company Adani Enterprises.

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