Benchmark stock market indices ended lower for the sixth consecutive trading session, dragged down by a sharp drop in metal stocks.
The S&P BSE Sensex fell 141.87 points to 59.463.93, while the NSE Nifty 50 settled 0.26 per cent lower at 17,465.80. The broader markets also fell as investors remain concerned about the possibility of interest rate hikes by central banks around the world.
With today’s drop, domestic shares posted their worst week in more than eight months, reported news agency Reuters. Both benchmarks have lost over 2.5 per cent this week, the worst since June 17, 2022.
Among sectoral indices, the Nifty Pharma, Nifty Healthcare, Nifty Consumer Durables and Nifty FMCG were the only gainers. The Nifty Metal index emerged as the top loser after falling 3 per cent.
Thirteen of the 15 stocks listed on the Nifty Metal index fell, with Adani Enterprises emerging as the top loser, dropping over 5 per cent. “Metals are under pressure due to a rise in the dollar index as commodities have an inverse proportionality to the dollar,” Astha Jain, senior research analyst at Hem Securities, told news agency Reuters.
Meanwhile, Adani Group has taken a big hit on the stock market as the Hindenburg report has eroded the market value of 10 listed companies by Rs 12 lakh crore. Three of the group’s main listed companies have almost fallen to levels Hindenburg had warned about in its report.
Stocks of other Adani Group companies have also taken a massive hit, including Adani Enterprises, which is down 61.29 per cent in a month. Market participants are worried about the fate of Adani Group stocks and experts have cautioned investors in the short-run.
On the other hand, Zee Entertainment Enterprises shares jumped nearly 3 per cent in intraday trade, after the NCLAT stayed an NCLT order to initiate insolvency proceedings against the media and entertainment behemoth. However, the shares of the company settled 1.61 per cent lower at Rs 195.45 per share.
Spicejet shares also surged over 12 per cent after the budget airline reported a nearly 5-fold surge in net profit in the December quarter. Fintech giant Paytm jumped nearly 3 per cent after launching UPI LITE, which will let users carry out quick transactions of up to Rs 200 without a pin.