The Indian stock market resumed its downward trajectory on November 21, as concerns over weak earnings, geopolitical tensions, and allegations against the Adani Group weighed heavily on investor sentiment. The market was also influenced by weak global cues, which further exacerbated the selloff.

Indices Overview

The Sensex fell by 423 points (0.54%) to close at 77,155.79, while the Nifty 50 declined by 169 points (0.72%) to end at 23,349.90. Intraday trading saw the indices dip over 1%, signaling broad market pessimism. The combined market capitalization of all BSE-listed companies shrank by ₹6 lakh crore, falling to ₹425 lakh crore from ₹431 lakh crore in the previous session.

Sectoral Analysis

• Biggest Losers:
  • The Nifty PSU Bank Index suffered the largest decline, dropping nearly 3%, followed by losses in Nifty Metal and Nifty Media, both of which fell over 2%.
  • Public sector lenders such as SBI, BoB, and PNB saw sharp drops, reacting to the Adani scandal.
• Gainers:
  • Nifty Realty rose by 1%, boosted by fresh investments and projects, while Nifty IT gained 0.5%, supported by positive news in the technology sector.

Top Gainers

1. Power Grid Corporation: Shares gained over 3%, following its successful bid to acquire the Khavda V-A Power Transmission Ltd project, valued at ₹18.95 crore.
2. One97 Communications (Paytm): Stock rose nearly 4% after Bernstein reaffirmed its bullish stance, raising the target price to ₹1,000, citing improved margins and lending prospects.
3. NLC India: Shares surged 8% after the company announced a ₹3,720 crore investment in renewable projects, including asset monetization plans.

Top Losers

1. Adani Group Stocks: Shares across the Adani portfolio, including flagship Adani Enterprises, plunged over 20% after allegations of bribery and fraud. The US Department of Justice claims over $250 million in bribes were offered to secure contracts.
2. PSP Projects: The stock dropped 9% after Adani Infra announced plans to acquire a 30.07% stake, with an open offer price below market expectations.
3. Dr. Reddy's Laboratories: Shares fell nearly 2% as the USFDA issued a Form 483 with seven observations for its Hyderabad facility.

Key Domestic Developments

• Supreme Court Ruling: In favor of Indus Towers, allowing telecom companies to claim Cenvat credits, potentially reducing liability by ₹3,704 crore.
• UPL: Announced a $350 million investment from Alpha Wave Global, boosting its Advanta Enterprises stake.
• Honasa Consumer: Fell 10% amid allegations of unethical practices, coupled with slowing growth for its flagship brand, Mamaearth.

Adani Impact on Market Sentiment

The indictment of Gautam Adani in a New York court has sent shockwaves through the market. Credit agency Moody's flagged the situation as "credit negative," raising concerns about the group’s governance and capital-raising ability. Adani Green Energy canceled a planned $600 million bond issuance in response to the developments.

Global Cues

• Asian Markets: Closed largely in the red, barring Korea's KOSPI and Sri Lanka's CSE All-Share.
• European and US Futures: Traded lower, indicating continued global market weakness.
• Commodities: Brent crude oil prices edged higher, adding pressure to import-heavy economies.

Conclusion

November 21 highlighted the vulnerability of Indian markets to both domestic controversies and global uncertainties. While pockets of the market like renewables and IT saw gains, broader indices reflected investor caution. With the ongoing Adani scandal and macroeconomic headwinds, volatility is expected to persist. Investors are advised to tread cautiously and focus on fundamentally strong stocks.

The Upcoming IPOs in this week and coming weeks are C2C Advanced System, Enviro Infra, Rajesh Power Services, Rajputana Biodiesel, Apex Ecotech, Agarwal Toughened, Ganesh Infraworld, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO is NTPC Green Energy and Lomosaic India.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.