Sensex, Nifty rise nearly 1% as sentiments improve; Adani Group stocks rally

Benchmark stock market indices jumped nearly 1 per cent on Monday as investor sentiment improved due to positive global cues and a strong recovery in Adani Group stocks.

The S&P BSE Sensex jumped 548.62 points to 60,357.59 at around 9:32 am, while the NSE Nifty 50 climbed 157.50 points to 17,751.85. The broader markets were also trading in positive territory, reflecting the strong reversal in market sentiments.

All the sectoral indices were trading in positive territory.

Nifty Metal was the top sectoral gainer, rising 1.52 per cent, boosted by a 10% jump in shares of Adani Enterprises. Nifty IT also rose 1.49 per cent as 9 out of 10 constituents gained over 1 per cent due to strong US data. Nifty Oil and Gas was another index that gained above 1 per cent.

Adani Group stocks dominated the Nifty 50 index in early trade, with Adani Enterprises leading from the front, followed by Adani Ports, which gained nearly 5 per cent. All other Adani Group stocks rallied after investment firm GQG Partners bought shares of 4 group companies worth over Rs 15,000 crore.

GQG’s investment has not only helped Adani stocks regain their footing on the stock market, but also played an important role in improving market sentiments, especially at a time when there is high volatility on Dalal Street due to the global economic situation.

Among other gainers on the 50-share index were HCL Tech, Infosys, PowerGrid, Bajaj Finserv, HDFC and TCS.15 of the 50 stocks gained over 1 per cent in early trade, giving a slight indication that the bulls are back on D-Street.

On the other hand, the top stocks trading in negative territory were Britannia, Cipla, JSW Steel and Tata Steel.

Overall, the market mood seems to have improved significantly in the wake of the rally in Adani Group stocks that started last week.

In fact, the rally has also helped peak interest of foreign institutional investors, who bought shares worth Rs 246 crore on a net basis on Friday. This is a positive development for domestic markets that have been under pressure due to sustained selling by foreign investors.