Stock markets close lower amid Hindenburg-Sebi-Adani row

Mumbai: Stock markets closed marginally lower in highly volatile trade on Monday as gains in private banks helped benchmark Sensex recoup some of the early losses inflicted by allegations against Sebi chief Madhabi Puri Buch and her husband by the US short-seller Hindenburg Research.

The 30-share Sensex closed lower by 56.99 points or 0.07 per cent at 79,648.92 with 18 of its constituents ending with losses and 12 with gains.

The index had declined by 479.78 points or 0.60 per cent to a low of 79,226.13 in morning trade due to losses in Adani group shares and blue-chips like Reliance Industries. The benchmark later staged a sharp recovery climbing around 880 points from the day’s lows to hit a high of 80,106.18. But at the fag-end, the BSE benchmark slipped into the negative territory and closed lower.

The NSE Nifty dipped 20.50 points or 0.08 per cent to 24,347. Intra-day, it hit a low of 24,212.10 and a high of 24,472.80.

From 30 Sensex firms, Adani Ports, NTPC, Power Grid, State Bank of India, Nestle, Mahindra & Mahindra, Reliance Industries and Tata Consultancy Services were the biggest laggards.

Axis Bank, Infosys, JSW Steel, Tata Motors, HDFC Bank and Kotak Mahindra Bank were among the gainers from the blue-chip pack.

At close of trade, eight of the Adani group firms

ended lower, while two of them bounced back

The stock of Adani Wilmar slumped 4.14 per cent, Adani Total Gas went lower by 3.88 per cent, Adani Energy Solutions dropped 3.70 per cent, NDTV fell by 3.08 per cent, Adani Ports dipped 2.02 per cent, Adani Enterprises declined 1.09 per cent, ACC (0.97 per cent) and Adani Power (0.65 per cent) on the BSE.

However, two of the group firms bounced back, with Ambuja Cements climbing 0.55 per cent and Adani Green Energy rising by 0.22 per cent.In the broader market, the BSE smallcap gauge climbed 0.51 per cent and midcap index went up marginally by 0.04 per cent.

Among the indices, utilities declined 1.04 per cent, FMCG by 0.67 per cent, power by 0.62 per cent, and services by 0.41 per cent. Consumer Durables, realty, oil & gas, metal and IT were the gainers.

A total of 2,126 stocks declined while 1,941 advanced and 118 remained unchanged on the BSE.

Meanwhile, the rupee consolidated in a narrow range and settled for the day lower by 2 paise at 83.97 against the US dollar on Monday, as market participants remained on the sidelines ahead of the release of key domestic macroeconomic data.

Forex traders said the rupee declined on a positive tone in the US dollar and a surge in crude oil prices.

At the interbank foreign exchange market, the local unit opened at 83.95 and touched an intraday low of 83.98.

The local unit finally settled at 83.97 against the American currency, lower by 2 paise from its previous close.

The local unit had slumped 37 paise to settle at an all-time low of 84.09 against the US dollar on August 5. On Friday, the rupee settled for the day higher by 2 paise at 83.95 against US

dollar.

India’s forex reserves jumped by $7.533 billion to a new record high of $674.919 billion during the week ended August 2, the Reserve Bank said on Friday.

In Asian markets, Seoul and Hong Kong settled in the positive territory while Shanghai ended lower.

Markets in Tokyo and Bangkok were closed for a holiday.

European markets were trading mostly higher. The US markets ended higher on Friday.