Sensex, Nifty Halt Four-Week Winning Streak; Adani Stocks Pummeled

Indian equity benchmarks snapped a four week winning streak as investors took a break from a record rally amid indications that the U.S. Fed will speed up the pace of policy reversal.

The S&P BSE Sensex fell 0.3% this week and closed little changed at 52,344.45 on Friday, while the NSE Nifty 50 Index slipped 0.1%. State Bank of India was among the biggest drags on both measures. Of 30 shares in the Sensex index, 12 rose and 18 fell. Sixteen of the 19 sector indexes compiled by BSE Ltd. tumbled, led by a gauge of power stocks.

India’s stocks have risen to records during the week, with the Sensex gaining 9.6% this year compared with an advance of about 4% for the MSCI AC Asia Pacific Index. Foreign buying has buoyed the nation’s gauges, along with an extended period of low interest rates in the U.S. that has diverted inflows into riskier emerging markets like India.

Eveready Indus reported net loss for the fourth quarter of Rs 443 crore vs. profit Rs 63 crore YoY.

• Revenue Rs 273 crore, +22% YoY

• Total costs Rs 250 crore, +14% YoY

• Q4 Includes Rs 630 crore one-time loss

• Q4 tax gain Rs 195 crore

Krishna Institute of Medical Sciences IPO: Day 3

The maiden offer by the General Atlantic-backed hospital chain subscribed 0.74 times as of 1:40 p.m.

KIMS is selling shares at Rs 815-825 apiece. The company plans to raise up to Rs 2,144 crore through the IPO.

Subscription Details

• Institutional subscription: 1.16 times.

• Non-institutional investor subscription: 0.27 times.

• Retail subscription: 2.46 times.

• Employees: 0.87 times.

Dodla Dairy IPO: Day 2

The issue was subscribed 6.36 times as of 1:40pm. Dodla Dairy is selling shares at Rs 421-428 in its Rs 520-crore IPO.

Subscription Details:

• Institutional subscription: 10.14 times.

• Non-institutional investor subscription: 42.17 times.

• Retail subscription: 8.83 times.

• Employees: 0.00 times.

• Power Grid options volume 2.4x the 20-day average, with 19,992 calls changing hands vs 6,232 puts

  • Stock down 3.2%, volume 1.5x the 20-day average for this time of day

• Bajaj Auto options volume 2.4x the average, with 13,906 calls vs 2,501 puts

  • Stock up 1.6%, volume 0.9x the average

• Hindustan Unilever options volume 2x the average, with 34,993 calls vs 13,023 puts

  • Stock up 1.6%, volume 1.2x the average

• NTPC options volume 1.7x the average, with 21,467 calls vs 5,173 puts

  • Stock down 2.8%, volume 0.9x the average

• Tata Consultancy options volume 1.6x the average, with 51,804 calls vs 17,842 puts

  • Stock up 0.1%, volume 0.8x the average

• Coal India options volume 1.6x the average, with 25,077 calls vs 7,599 puts

  • Stock down 3.5%, volume 0.8x the average

Indian equity benchmarks were on course to log their first weekly decline in 4, giving up their brief gains in early trading.

The S&P BSE Sensex slipped 0.66% to 52,000, while the NSE Nifty 50 Index fell 0.72% to trade at 15,580.70. Both the gauges are down around 1% for the week.

The broader underperformed their larger peers. The S&P BSE MidCap fell 1.39% and S&P BSE SmallCap declined 1.57%. All 19 sector sub-indices compiled by BSE Ltd. fell, with metal stocks leading the drag.

The market breadth was heavily skewed in favour of the bears. About 801 stocks gained, 2,289 declined and 130 remained unchanged.

Shares of the commercial vehicle maker fell the most in nearly two months after Credit Suisse downgraded the automaker, citing poor recovery of commercial vehicle sales.

The stock extended its losing streak to five days, making it the worst run since March. It was also the worst performer on the NSE Nifty Auto Index.

Of the 48 analysts tracking the stock, 33 have a ‘buy’ rating, 11 suggest a ‘hold’ and four recommend a ‘sell’, according to Bloomberg data. The average of 12-month consensus price targets implies an upside of 19.5%.

To read what the broking firm had to say, click here.

Indian sovereign bonds trade mixed ahead of a Rs 32,000 crore ($4.3b) debt sale and the minutes of the RBI’s June meeting later Friday. The rupee is headed for its worst week since April.

• 5.63% 2026 bond yield drops 2bps to 5.64%; 10-year yield up 1bp to 6.02%

• USD/INR rose 0.2% to 74.2550; up 1.5% this week, headed for its biggest gain since the week ended April 9

• Traders will await minutes of RBI’s June meeting where the central bank kept rates steady and vowed to continue with its accommodative stance to revive growth; after that data showed retail inflation rising by the most in six months

The NSE Nifty Metal slumped as much as 4.64%, its fifth straight session of decline, on Federal Reserve’s signals for interest-rate increases, a rising dollar and China’s efforts to slow inflation.

The Asian country has said it will release metals from state reserves in a timely manner to push prices back to a normal range, ramping up efforts to cool the surge in commodities.

The metal index is down over 8% for the week, its worst performance since May last year.

A block of 9.79 million shares in Reliance Power Ltd., equivalent to 0.4% of float, traded at a market value of Rs 15.52 crore.

• The price was Rs 15.85 per share, a discount of 2.2% from the open; Reliance Power rose 4.6% today and is up 365% this year

• The block represents 11% of the 20-day average volume

• Total trading reached 43.6 million shares, compared with the 20-day average of 54.8 million for this time of day; Bloomberg model estimates volume will reach 76.7 million by end of day

Shares of the Rakesh Jhunjhunwala-backed firm fell as much as 5.9% after CLSA initiated coverage on the stock with a 'sell' rating and a target price of Rs 1,095, implying a potential downside of 34%.

The brokerage firm cited e-sports still being a niche nascent market in India and the expected intensification of competition from the likes of Jio Games, MPL, Paytm First Games and Dream 11 in the gaming sector as reasons for its bearish rating.

In its report, CLSA added that Nazara's stock valuation is expensive and carries a "hefty scarcity premium of 3x to CLSA’s India coverage".

With today's fall, Nazara has matched its worst losing streak since it went public in March. Shares have fallen for five days straight now, as they fell in May earlier this year.

To read more on what CLSA had to say, click here

Three of the six listed companies controlled by billionaire Gautam Adani fell 5% to the lower circuit level for a fifth consecutive session on Friday.

• Adani Total Gas Ltd., Adani Power Ltd. and Adani Transmission Ltd. dropped by their daily limit

  • Renewable energy producer Adani Green Energy Ltd. also fell as much as 5.9%

  • Adani Enterprises Ltd. rose as much as 2.8%, trimming its week’s slide to ~ 13%, while Adani Ports and Special Economic Zone Ltd. gained as much as 2.7%

SBI Cards & Payment Services Ltd. fell as much as 6.5%, most intraday since April 12, after 50.9 million shares changed hands in six large trades, according to data compiled by Bloomberg.

Stock insight

• Extends fall to second day; trading volume 17x three-month full-day average

• Worst performer on NSE Nifty Next 50, S&P BSE 200 indexes

• Most traded Indian stock by value, volume

• Buyers, sellers not immediately known

• Analysts have 16 buy, no hold, and no sell recommendations on the stock.

• The price target of Rs 1,134.80 represents a 14% increase from the last price

Note: SBI Cards and Payment Services shareholder CA Rover Holdings was offering up to 48 million shares at a price range of Rs 1,002-1,041.30 in an accelerated bookbuild, according to terms seen by Bloomberg.

India’s key stock benchmark fluctuated between gains and losses as investors took a break from a record rally amid indications that the U.S. Fed will speed up the pace of policy reversal.

The S&P BSE Sensex fell 0.2% to 52,213.21, while the NSE Nifty 50 Index declined 0.3% to 15,642.75. Both the indices had opened as much as 0.5% higher.

Reliance Industries Ltd. was among the biggest drags on both measures. Of 30 shares in the Sensex index, 12 rose and 38 fell. All but two of the 19 sector indexes compiled by BSE Ltd. tumbled, led by a gauge of metal stocks.

India’s stocks have risen to records during the week, with the Sensex gaining about 9% this year compared with a 3.9% advance for the MSCI AC Asia Pacific Index. Foreign buying has buoyed the nation’s gauges, along with an extended period of low interest rates in the U.S. diverting inflows into riskier emerging markets like India.

India’s bond traders are awaiting the sale of Rs 32,000 crore of debt at a weekly auction. The rupee could get a boost as oil prices ease for a second day.

• USD/INR rose 1% to 74.0762 on Thursday

  • Implied opening from forwards suggests spot may start trading around 74.13

• RBI to conduct INR2t 14-day variable rate reverse repo auction

• It will also release weekly FX and bank credit data

• 10-year yields fell 3bps to 6.02% on Thursday

India Pesticides Ltd., a Lucknow-based maker of herbicides, insecticides and fungicide, plans to raise Rs 100 crore rupees selling new shares, according to an advertisement in the Financial Express newspaper Friday.

• IPO includes offer-for-sale of shares worth Rs 419 crore by existing shareholders and Rs 281 crore of shares by founder Anand Swarup Agarwal

• Investors can bid for minimum 50 shares of face value Re 1 each in the sale, which opens June 23 and closes June 25

• Axis Capital and JM Financial are managing the sale

Asian stocks drifted Friday after a rally in U.S. technology shares and Treasuries Thursday, as investors unwound some of this year’s dominant reflation trades.

The dollar pared gains and commodities steadied after overnight losses.

Equities climbed in Hong Kong and Australia, and were little changed in Japan and South Korea. India’s SGX Nifty 50 Index futures for June delivery rose 0.4% to 15,750.00, while MSCI Asia Pacific Index little changed. The NSE Nifty 50 Index fell 0.5% Thursday to 15,691.40.

In China, shares fluctuated after U.S. regulators proposed a ban on products from Huawei Technologies Co. and four other Chinese electronics companies. U.S. futures edged higher after a fresh bout of rotation from cyclical stocks pushed the tech-heavy Nasdaq gauge to another record.

Treasury yields steadied from a tumble amid speculation investors were unwinding bets on a steeper curve, after Federal Reserve officials signaled monetary-policy tightening could start sooner than previously thought, helping to rein in the risk that inflation might get out of hand. Australian 10-year yields retreated.

The Bloomberg Dollar Spot Index dipped after a fifth day of gains, its longest winning streak since March 2020. Its advance has made commodities that are priced in greenback more expensive, driving declines across the complex. Copper is headed for its worst week since the start of the pandemic and oil slipped Friday.

Back home, Power Grid, Natco Pharma, J&K Bank may react as the companies reported quarterly results after the market closed Thursday. Eveready Industries, GMR Infra are among the companies scheduled to report earnings Friday. Foreign investors sold net Rs 886 crore of stocks on Wednesday, according to NSDL website.