Sensex Surges 1961 Points; Adani Stocks Recover as Markets Rally - Read Now

Indian stock markets witnessed a strong rally on Friday with the Sensex jumping by 1961 points that proved to be its best performance in five months. The rally has driven the value buying, positive US Labor Market Data, and bottom fishing by retail investors who have become active after recent market corrections. Nifty also witnessed big jump, as it touched 557 points and closes at 23,907.

One of the key highlights of the day was stock recovery for the Adani group, which finally came out of the jitters caused by the US SEC and DOJ indictments. Six of the ten listed companies of Adani, including the flagship Adani Enterprises, Adani Ports, Ambuja Cements and ACC, ended in the green. However, still under pressure were Adani Green Energy and three other Adani stocks, reflecting the lingering impact of the US charges.

The Sensex, comprising 30 stocks, closed at 79,117 points, up 2.54%, while the Nifty 50 gained 2.39%. Nifty IT emerged as one of the performers following positive US job data across 3% plus. Banking stocks also performed well on the whole and State Bank of India (SBI) was at the forefront with a jump of 4.51%. SBI performance helped disperse fears over its exposure to the Adani Group

Adani Group Stocks Rebound Despite Global Anxiety
Adani stocks showed mixed performances during the day. While Adani Enterprises jumped 2.12% and Adani Ports increased 2.09%, Adani Green Energy went down by 7.96%. Similarly, Adani Energy Solutions and Adani Power slipped by 6.94% and 3.08%. Analysts suggested the hangover from US charges could also be a cap on further rallies in Adani stocks. Meanwhile, pressure continues to linger over Adani bonds. The 2027 Adani Ports bonds have traded 1% lower overseas.

Retail Investors Lead the Charge
The prevailing market view says that retail investors had a significant role to play in the day's rally. These investors went on a spree of bottom fishing and picked up blue-chip stocks at lower prices. Reliance Industries, which recorded sharp gains, besides other heavyweight counters in all categories, were among the major contributors to the rally.

Global Factors and Election Watch
Investors are now focusing on the state election results in Maharashtra and global events, such as Russia-Ukraine tensions, that might impact market psychology in the next couple of weeks.
Positive signs were seen as US Labor data came in better than expected.
Another reason was the strength of US labor market data, with jobless claims dropping by 6,000 to a seven-month low. This has indicated that the growth in the US jobs is picking up, which bodes well for other global markets. The strong data not only brightened investor sentiment but also saw significant buyings in IT and technology stocks.

Weekly Performance
Compared to the previous week, the Sensex gained 1,536 points or 1.98% and the Nifty 374 points or 1.59%, thereby indicating a general turnaround in investor sentiment.

Market observers remain cautious despite Friday's rally. The respite in the Adani stocks and blue-chip counters is encouraging, but what has kept in focus are the prospects of US indictments affecting the fundraising plans of the Adani group and global risks. Analysts feel that the course of markets will be determined by domestic political outcomes and global macroeconomic developments.