Mumbai. There was a decline in the local stock market on Thursday and BSE Sensex fell by 423 points. There was a sharp decline in the shares of the group companies amid allegations of bribery and fraud in America against industrialist Gautam Adani. This also affected the local market. Apart from this, capital withdrawal by foreign institutional investors and weak trend in Asian and European stock markets also affected the sentiment.
BSE Sensex based on 30 shares closed at 77,155.79 points with a decline of 422.59 points or 0.54 percent. At one time during trading it had fallen to 775.65 points. National Stock Exchange’s Nifty also fell by 168.60 points or 0.72 percent and closed at 23,349.90 points.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market faced new pressure due to increasing tensions in the conflict between Russia and Ukraine and increase in nuclear concerns. Apart from this, the latest case of Adani in America has increased the troubles of the market. He said, “Although there were signs of slowdown in FII selling, it increased again. Went. This had an adverse impact on market sentiment, especially the financial sector. “We expect the stance to improve as global and domestic political issues stabilize.” Among the 30 Sensex stocks, Adani Port fell 13 percent. Gautam Adani has been accused by US prosecutors of paying bribes of $265 million to Indian officials in exchange for favorable terms to win solar power contracts in India.
After these news, shares of Adani group companies have fallen. Adani Enterprises, Adani Energy Solutions, Adani Ports and Adani Green Energy declined by about 23 percent. Apart from this, State Bank of India, NTPC, ITC, Asian Paints, Bajaj Finance and Bajaj Finserv were also major losers. On the other hand, gainful stocks include Power Grid, UltraTech Cement, HCL Technologies and Axis Bank. BSE Smallcap index related to small companies fell 0.67 percent, while the Midcap index related to shares of medium companies fell 0.37 percent.
Motilal Oswal Financial Services Ltd. Siddharth Khemka, Head (Asset Management), said, “Many bank shares remained under heavy selling pressure. The reason for this is the loans given to Adani Group companies. We expect things to remain positive for the telecom companies as the Supreme Court has ruled in their favor. “This gives them the right to claim ‘tax credit’ on charges paid for infrastructure like tower parts and green shelters.” The domestic stock market was closed on Wednesday due to elections in Maharashtra.
In other markets of Asia, South Korea’s Kospi, Japan’s Nikkei and Hong Kong’s Hang Seng were in loss while China’s Shanghai Composite was in profit. There was a declining trend in the major markets of Europe. Most American markets remained positive on Wednesday. Global oil standard Brent crude jumped 1.13 percent to $ 73.71 per barrel. According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 3,411.73 crore on Tuesday. BSE Sensex had gained 239.37 points on Tuesday while NSE Nifty had gained 64.70 points.