Indian Shares Eye Muted Start; Adani Stocks Under Scrutiny
Wednesday, Nov 20, 2024 9:53 pm ET
4min read Indian shares are set for a muted start on Tuesday, tracking weakness in Asian peers and mixed global cues. The Nifty50 index, after breaking its seven-day losing streak on Monday, faces a volatile session ahead of the Nifty expiry day. The Adani Group's stocks, particularly Adani Green Energy, remain in focus following recent allegations of fraud and bribery involving its chairman, Gautam Adani.
The US indictment of Gautam Adani and other executives over the alleged payment of more than $250 million in bribes has raised concerns about the group's financial health and corporate governance. Investors are closely monitoring the developments, with Adani stocks witnessing a sell-off in recent days. The Adani Group has denied the allegations, but the uncertainty has impacted market sentiment.
Analysts like Deepak Jasani of HDFC Securities expect the Nifty to form a higher low before embarking on a sustainable bounce. However, Ajit Mishra of Religare Broking believes that bears are firmly in control, using every rebound as an opportunity to short. The market's resilience will be tested as investors await further developments in the Adani case and assess the broader economic outlook.
The global market's mixed cues, including Asian equities' performance and US earnings, are also influencing the Indian market's opening. A strong US dollar and weakness in Asian markets have contributed to the cautious start for Indian shares. Meanwhile, Bitcoin set another all-time high, supported by a series of developments highlighting the deepening embrace of the digital-asset industry in the US.
In conclusion, Indian shares are set for a muted start on Tuesday, with Adani stocks under scrutiny following the US indictment of Gautam Adani. The market's performance will be influenced by a combination of domestic factors, such as the Nifty expiry day and sector-specific news, and global cues like Asian equities' performance and US earnings. Investors are advised to monitor the situation closely and make informed decisions based on the evolving market dynamics and regulatory developments.
The US indictment of Gautam Adani and other executives over the alleged payment of more than $250 million in bribes has raised concerns about the group's financial health and corporate governance. Investors are closely monitoring the developments, with Adani stocks witnessing a sell-off in recent days. The Adani Group has denied the allegations, but the uncertainty has impacted market sentiment.
Analysts like Deepak Jasani of HDFC Securities expect the Nifty to form a higher low before embarking on a sustainable bounce. However, Ajit Mishra of Religare Broking believes that bears are firmly in control, using every rebound as an opportunity to short. The market's resilience will be tested as investors await further developments in the Adani case and assess the broader economic outlook.
The global market's mixed cues, including Asian equities' performance and US earnings, are also influencing the Indian market's opening. A strong US dollar and weakness in Asian markets have contributed to the cautious start for Indian shares. Meanwhile, Bitcoin set another all-time high, supported by a series of developments highlighting the deepening embrace of the digital-asset industry in the US.
In conclusion, Indian shares are set for a muted start on Tuesday, with Adani stocks under scrutiny following the US indictment of Gautam Adani. The market's performance will be influenced by a combination of domestic factors, such as the Nifty expiry day and sector-specific news, and global cues like Asian equities' performance and US earnings. Investors are advised to monitor the situation closely and make informed decisions based on the evolving market dynamics and regulatory developments.
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