Financials lead Indian shares higher; most Adani stocks extend fall
Updates to add analyst comments in paragraphs 9, 19; updates share movements
By Bharath Rajeswaran
Nov 22 (Reuters) -Indian shares rose on Friday asfinancials rebounded from last session's sharpdrop, while most Adani group stocks continued to fall after U.S. prosecutors indicted the conglomerate's founder Gautam Adani on Thursday overalleged bribery and fraud.
The NSE Nifty 50 .NSEI added 1.04% to 23,590.82 points, as of 10:21 a.m. IST, while the BSE Sensex .BSESN gained 1.02% to 77,934.55.
All the 13 major indexes logged gains. State-owned lenders .NIFTYPSU added 2.1% after a 2.7% slide on Thursday and topped the sectoral gains.
Highest weighted financials .NIFTYFIN and banks .NSEBANK added about 1% each.
IT companies .NIFTYIT, which earn a significant share of their revenue from the U.S., climbed 1.8% on the back of strong labour market data in the U.S.
On the other hand, seven of the 10 Adani group stocks logged losses at the open. Adani Total ADAG.NS fell 1.5%, while Adani Energy ADAI.NS, down 8.5%,dropped the most.
Adani Enterprises ADEL.NS and Adani Ports APSE.NS fell about 3% each andwere the top losers on Nifty 50. The stocks extended their decline to the second session even as the groupdismissed the accusations as "baseless".
"Markets trajectory is unlikely to be influenced heavily by Adani group stocks since there are only two of them in the benchmark Nifty 50, with not much weightage as well," said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
"While thereis a rise in benchmarks onthe day, led by financials' rebound, a sustained recovery requires reversal of foreign outflows and improvement in earnings."
Among individual stocks, State Bank of India SBI.NS rose 2.2% after Jefferies reiterated the country's largest public lenderas one of its top picks in the sector, citing stable asset quality and rising recoveries.
SJVN SJVN.NS climbed 6% after deal withthe Rajasthan government to develop renewable energy.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza and Sumana Nandy
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