A man walks past a new brand identity for Nifty Indices inside the National Stock Exchange (NSE) building in Mumbai, India, May 28, 2019. REUTERS
Nov 27 – Indian shares were muted on Wednesday, tracking Asian peers on persistent concerns of a global tariff war, while Adani Group stocks rose but are still in focus due to the ripple effects of the bribery charges against its billionaire founder.
The NSE Nifty 50 was up 0.01% at 24,196.2 points as of 11:15 a.m. IST, while the BSE Sensex inched 0.02% higher to 80.021.09.
Eight of the 13 major sectors logged losses. However, the more domestically-focused small-caps (.NIFSMCP100), rose 0.8%, while mid-caps traded flat.
Asian stocks were subdued on the day as investors fretted over what countries could be targeted for tariffs next by U.S. President-elect Donald Trump, a day after he pledged new levies on Canada, Mexico and China.
“Anticipated higher tariffs on China by elected President Donald Trump and caution ahead of the monthly (futures and options) expiry on Thursday could lead to bouts of profit booking in the next two sessions, said Siddhartha Khemka, head of Research, Wealth Management, at Motilal Oswal Financial Services.
All 10 listed Adani Group stocks rose 0.5%-7.5% on Wednesday.
They lost a combined $34 billion over four sessions until Tuesday after U.S. authorities indicted the founder Gautam Adani and other top executives last week. The group has called the allegations “baseless”.
The group also said on Wednesday that Adani and his aides have not been charged under the U.S. Foreign Corrupt Practices Act.
“The selling pressure (in Adani stocks) may now ease a bit as some investors will come back, especially as the recent fall has made some of the stocks more attractive than before,” said Deven Choksey, managing director at DRChoksey Finserv.
Shares of NTPC Green Energy (NTPG.NS), and the renewables unit of state-owned power producer (NTPC.NS), rose about 13% in its trading debut.
Prestige Estate Developers (PREG.NS), lost 3.5% after Morgan Stanley double-downgraded the stock, citing weak sales momentum in the current fiscal year.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and sonia Cheema
