Thu Nov 21 10:08:00 UTC 2024: **Indian Stock Market Plunges on Weak Global Cues and Adani Indictment**
**MUMBAI, INDIA (November 21, 2024)** – Indian stock markets experienced a significant downturn on Thursday, with the Sensex and Nifty 50 indices each falling by over 1% in morning trade. This sharp decline follows weak global cues and several negative domestic factors, wiping out approximately ₹6 lakh crore (approximately $72 billion USD) from the market capitalization of BSE-listed firms in a single session.
The sell-off affected all market segments, with mid and small-cap stocks also suffering losses. The Sensex opened at 77,711.11 and fell to 76,802.73, while the Nifty 50 dropped from 23,488.45 to 23,263.15. By 11:20 am, the losses had moderated slightly, but the negative trend persisted.
Several factors contributed to the market’s downturn:
* **Adani Group Indictment:** The US indictment of Gautam Adani and other Adani Group executives on bribery charges severely impacted investor sentiment. Shares of Adani Enterprises and Adani Ports plummeted by 23% each.
* **Weak Q2 Earnings:** Disappointing quarterly earnings from numerous companies added to the negative sentiment. Revenue growth slowed compared to the previous quarter, and net profit growth also decelerated, with the exception of the banking, financial services, and insurance (BFSI) sector.
* **Geopolitical Tensions:** The escalating conflict in Ukraine and Russia’s revised nuclear doctrine further dampened investor confidence.
* **FPI Selling:** Continued selling by foreign portfolio investors (FPIs), who offloaded ₹94,017 crore in October and an additional ₹25,942 crore in early November, exerted downward pressure on the market.
Market analysts expressed concern, with some pointing to key support levels for the Nifty 50 (23,100-22,800) and others suggesting a cautious approach and hedging strategies. While some believe a short-term rebound is possible above certain resistance levels, the overall market sentiment remains weak. The situation warrants close monitoring, and investors are advised to seek professional advice before making any investment decisions.
First Piper 