Market stabilizes in morning trade; some Adani Group firms recover

Ahead of strong cues from Adani Group firms, the domestic equity market opened higher.

As investors wait and watch for the results of the three-day meeting of the Reserve Bank of India’s (RBI) monetary policy committee that began on Monday, the stock market is likely to remain stable today.

The domestic stock market appeared to have recovered from last week’s losses when shares of the Adani Group companies crashed, dragging down the Sensex and Nifty stock indices in the process.

At 9.30 on Tuesday morning, the BSE Sensex increased by 123 points to 60,630.32, while the Nifty increased by 34 points to 17,798.95.

Adani Enterprises, Gravita, Tri Turbine, Adani Transmission and BLS International Services were among the active stocks that went up on Tuesday morning on BSE. Lloyd Steel, ATGL, Adani Power, Balamines, and Mold-Tek Packaging were among the laggards.

Among the Adani Group firms, shares of Adani Enterprises recovered Rs 21.20 or 1.53 percent to Rs 1,593.70 apiece while Adani Ports was up Rs 4.50 or 0.83 percent to Rs 549.80 on Tuesday morning. Adani Wilmar’s shares were up Rs 14.40 or 3.79 percent to Rs 393.60 while Adani Transmission’s shares surged Rs 62.80 or 5 per cent to Rs 1,319.25.

Shares of Adani Green were down Rs 44 or 5 percent to Rs 844.65 while Adani Total Gas was down Rs 77 or 5 percent to Rs 1,464.20 on Tuesday morning.

In Asian markets, Japan’s Nikkei was up 54 points, Hong Kong’s Hang Seng surged more than 222 points, China’s Shanghai was trading 6 points up while S and P ASX also surged 6 points on Tuesday morning.

In the American market, Dow Jones ended with 34 points down, Nasdaq decreased 119 points, S&P dipped 25 points while the Refinitiv United States lost 2 points.

In European markets, FTSE dipped 65 points, CAC was trading in the green while Deutsche and Refinitiv were trading in the negative territory when the Asian markets opened on Tuesday morning.

On Monday, Sensex settled at 60,506.90, down 334.98 points or 0.55 per cent, whereas Nifty closed at 17,764.60 level, down 89.45 points or 0.50 per cent.

The Reserve Bank of India’s monetary policy committee meeting started on Monday and will last three days. The decision will be made public on February 8th.

The policy repo rate, or the rate at which the RBI lends money to all commercial banks, was increased by 35 basis points (bps) to 6.25 percent at the December meeting of the Monetary Policy Committee.

Since May 2022, the RBI has raised the benchmark interest rate by 225 basis points, bringing it to 6.25 percent, to reduce domestic retail inflation, which has been above the upper tolerance limit for nearly three quarters. Raising interest rates typically reduces economic demand, which restrains inflation.