Indian Stock Market: 6 Key Things That Changed For The Market Over The Weekend – Gift Nifty For Hindenburg Report On Sebi Chief

Indian Stock Market: Domestic equity market indices Sensex and Nifty 50 are expected to open weakly on Monday as investors are cautious after the recent Hindenburg report and key domestic inflation data is due to be released today amid mixed global market signals.

Asian markets recorded mixed trading results, while the US stock market closed higher in the previous session

The Indian stock market may remain volatile on Monday due to fresh allegations by Hindenburg Research against Sebi Chairman Madhabi Puri Buch in the wake of the recent attack on the Adani Group.

Analysts believe there may be a knee-jerk reaction in the stock market today, but they do not expect a major sell-off in Adani Group shares or the overall market due to the latest Hindenburg report. They believe the allegations were “without any conclusive evidence and were only designed to create market unrest.”

On Friday, the leading indices for the Indian stock market closed more than one percent higher each, led by a rally in index heavyweights amid supportive global signals after new data eased concerns about a looming recession in the US.

The Sensex rose 819.69 points or 1.04% to close at 79,705.91, while the Nifty 50 was 250.50 points or 1.04% higher at 24,367.50.

“I do not expect the recent Hindenburg report to have too much of an impact on the stock market. There may be an initial reaction but eventually there will be buying in the market. Adani Group shares too will not be significantly negatively affected by these recent developments. Shares of Adani Group companies may fall initially but will recover,” said Sudip Bandyopadhyay, group chairman of Inditrade Capital.

This week, investors will be keeping an eye on the latest developments in the Adani-Hindenburg saga, the next Q1 results, China’s interest rates and economic activity data, India’s IIP and CPI inflation data, upcoming IPOs, global geopolitical developments and other key triggers that will impact the stock market.

Here are the key global market signals for Sensex today:

Asian markets

Asian markets were mixed on Monday ahead of the release of key economic data for the region this week, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 0.2 percent.

Japanese markets were closed for a holiday. Nikkei futures traded at 35,370, compared with a spot close of 35,025. South Korea’s Kospi gained 1.20% in early trading, while the Kosdaq rose 1.42%.

Futures for the Hong Kong Hang Seng Index pointed to a slightly lower opening.

Give Nifty as a gift today

Gift Nifty was trading at around 24,370, a discount of nearly 30 points from the previous close of Nifty futures, indicating a negative start for the Indian stock market indices.

Wall-Street

The U.S. stock market closed higher on Friday, recovering most of its losses from the market slump earlier in the week.

The Dow Jones Industrial Average gained 51.05 points, or 0.13%, to 39,497.54, while the S&P 500 rose 0.47% to 5,344.16. The Nasdaq Composite closed 0.51% higher at 16,745.30.

For the week, the Dow and Nasdaq fell 0.6% and 0.18%, respectively.

Hindenburg Report

US-based short-seller Hindenburg Research has claimed in its latest investigative report that SEBI Chairman Madhabi Puri Buch owned shares in obscure offshore companies involved in the Adani “fund diversion scandal”.

While the Adani Group has denied the allegations and described them as “malicious”, “wicked” and “manipulative”, the Sebi chairperson and her husband Dhaval Buch also described the Hindenburg report as “baseless”, “devoid of any truth” and an attempt at “reputation destruction”.

Oil prices

Crude oil prices were little changed on Monday, largely maintaining their more than 3% gains from last week.

Brent crude futures fell 0.09% to $79.59 a barrel, while U.S. West Texas Intermediate crude futures rose 0.03% to $76.86.

Currencies

The yen was slightly weaker against the U.S. dollar, falling further from the seven-month high it hit last week. The dollar traded at 146.87 yen, up 0.2 percent from Friday’s close in the U.S. The euro was at 1.0918 dollars and the dollar index was unchanged at 103.18.

(With contributions from Reuters)

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