Indian shares post best session since early June, snap two-week losing streak
Updates for market close
By Bharath Rajeswaran
Nov 22 (Reuters) -Indian shares posted their best session since early June on Friday, snapping a two-week losing streak, as easing worries about credit risks from exposure to Adani Group stocks lifted heavyweight financials.
The NSE Nifty 50 .NSEI rose 2.39% to 23,907.25, while the BSE Sensex .BSESN gained 2.54% to 79,117.11. Friday's climb pushed the Nifty and Sensex to weekly gains of 1.6% and 2% after two weeks of losses.
Eleven of the 13 major sectors advanced this week, with realty .NIFTYREAL jumping 6.26%. Indian shares had slipped into correction territory in recent sessions on lacklustre corporate earnings and sustained foreign selling.
The blue-chips hit their lowest since early June on Thursday, after Chairman Gautam Adani and seven others were indicted by U.S. on alleged bribery charges.
The Adani Group has denied the allegations, calling them "baseless".
After losing about $27 billion in market value on Thursday, Adani group companies shed about $1.2 billion on Friday, with only four of the 10 group stocks ending in the red.
However, on a weekly basis, Adani Enterprises ADEL.NS and Adani Ports APSE.NS fell 21.2% and 10.1%, respectively, leading the list of Nifty 50 laggards.
"Post the corrections in benchmarks and broader small- and mid-caps, quality stocks are available at reasonable valuations, attracting investors," said Anil Rego, founder and fund manager at Right Horizons.
On the day, information technology .NIFTYIT rose 3.3%, after data showed strength in the labour market in the U.S., a key source of revenue for the sector.
J.P. Morgan said it saw no major credit risk to India's banking system from exposure to Adani Group stocks.
State-owned lenders .NIFTYPSU advanced 3%. Financials .NIFTYFIN and banks .NSEBANK gained about 1.5% each, rebounding from a drop in the previous session.
State Bank of India SBI.NS climbed 4.5% after Jefferies reiterated the lender among its top picks in the banking sector, citing strong earnings outlook.
India's Nifty posts best session since early June https://reut.rs/495srVC
India's Nifty 50 snaps a two-week losing streak https://reut.rs/3Z2WiZR
Weekly performance of India's key stock indexes https://reut.rs/4eGnaF6
Weekly performance of India's Nifty 50 stocks https://reut.rs/3ATpsTk
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza, Sumana Nandy and Janane Venkatraman
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
