Sensex extends gains to 4th day after volatile session; Nifty flat on Adani rout

The severe crash in Adani Group stocks had a ripple effect on the domestic stock market today. While the Sensex ended 224 points higher, Nifty ended 6 points lower as the 50-share index was dragged down by the carnage in Adani Enterprises and Adani Ports.

From the Sensex pack, ITC, and IndusInd Bank were the top gainers, rising about 3.5-5%. HUL, Infosys, Wipro, HCL Tech, TCS, ICICI Bank, and Kotak Bank also closed with gains. However, HDFC, NTPC, Bajaj Finance, Power Grid, and Tata Steel ended with cuts.

Sectorally, Nifty FMCG rose 2.28% and Nifty IT surged 1.83%. Banks, auto, media, realty, and consumer durables stocks also closed higher, whereas, in the broader market, Nifty Midcap50 increased 0.30% and Smallcap50 advanced 0.59%.

"Despite a growth-oriented Budget, drop in crude prices, and upside in the global market, the domestic market is not able to gain because of the Adani saga having a ripple impact on the investors. In addition, the premium valuation of India continues to weigh down the performance compared to other emerging markets which are expecting an upside in the economy," Vinod Nair, Head of Research at Geojit Financial Services, said.

Global Markets
Most Asian markets rose on Thursday on hopes the Federal Reserve's campaign of interest rate hikes could be close to an end after it acknowledged progress in its long-running battle against inflation.

In Asian trade, Japan's Nikkei 225 rose 0.2% to 27,402. China's Shanghai Composite ended flat at 3,286, while Hong Kong's Hang Seng Index surged 0.1% to 22,085.

Meanwhile, the blue-chip FTSE 100 rose 0.3% after slipping for the past two sessions, while the domestically focussed FTSE 250 index added 0.8%.

Crude Impact
Oil prices were steady on Thursday after tumbling in the previous session as a weaker dollar boosted sentiment, though looming sanctions on Russian oil products added uncertainty over supply.

Brent crude futures fell 10 cents, or 0.1%, to $82.74 a barrel, while West Texas Intermediate (WTI) US crude futures advanced 1 cent to $76.40.

Currency Watch
The Indian rupee weakened 0.31% against the US dollar, and quoted at 82.18 per dollar, shrugging off weakness in the dollar index, as concerns over a rout in the local equities bled into the currency market.

(With inputs from agencies)