Markets garner largest single-day gain of 2023 after mega block deal in Adani stocks; SBI, Airtel, RIL top gainers

Markets ended the week on a perky note after a mega block deal from large foreign investors in Adani Group’s four companies. Sensex and Nifty 50 posted their best single-day gain of 2023 on Friday. Broad-based buying was seen across sectoral indices. PSU banks were the biggest gainers with SBI taking lead. Heavyweights RIL and HDFC Bank further lifted the performance. Also, a rally in global cues on more interest rates hope from Fed to tame inflation was among the contributing factor. Rupee recorded its best week by ending below the 82 mark against the US dollar.

Sensex closed at 59,808.97 up by 899.62 points or 1.53%. While Nifty 50 ended at 17,594.35 higher by 272.45 points or 1.57%. India’s volatility index tumbled by over 6%.

The upside is widely attributed to mega-buying from foreign investors in Adani Enterprises, Adani Green Energy, Adani Ports, and Adani Transmission. US-based GQG Partners purchased equity shares in these Adani companies for a massive ₹15,446 crore in a series of secondary block deals.

Rohan Shah-head technical analyst at Stoxbox said, “Two major gainers in the Nifty 50 were Adani Enterprise & Adani Ports. The share price of Adani Enterprises rose over 16%, while the share price of Adani Ports rose over 9%.”

The block deal in Adani stocks also lifted major public sector banks as PSBs were impacted after the Hindenburg report in late January due to their exposure against the Gautam Adani’s group.

SBI took the lead in the strong rally by gaining over 5.1% followed by Bharti Airtel (+3.3%), Reliance Industries (+2.5%), ITC (+2.4%), Tata Steel (+2.2%), and IndusInd Bank (+2.18%) on Sensex.

Other heavyweights such as HDFC Bank, Tata Motors, ICICI Bank, HDFC, Kotak Bank, Titan, L&T, M&M, NTPC, and HCL Tech also saw substantial upsides between 1-2%.

On the laggards front, Tech Mahindra, and Ultratech Cements were worst hit by plunging over 2% and 1% respectively on Sensex.

All sectoral indices were in the green with banking stocks driving the rally. Nifty PSU Bank was the top performer surging by a whopping 5.40%. While overall Bank Nifty skyrocketed by 861.55 points or 2.13% to end at 41,251.35. BSE Bankex zoomed over 973 points.

The metal index too contributed significantly to the upside by surging over 3.5% on NSE and 1.5% on BSE. Financial services, FMCG, healthcare, realty, and media stocks also witnessed a sharp upside.

Also, Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities said, “Indian markets reacted to a strong positive undercurrent across the global equities that triggered a massive bout of short covering in key sectors. Markets were in a fall season and hence the valuations had become attractive prompting traders to shrug off the weak sentiment.”

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