Stock Markets Snap 3-Day Rally on Profit-Taking in HDFC, ICICI Bank; Adani Group Stocks Rally

Snapping its three-day gaining streak, benchmark BSE Sensex declined by 387 points on Friday due to profit-taking in blue-chip shares HDFC Bank and ICICI Bank even as Adani group shares rallied after a favourable Sebi order.

The 30-share BSE Sensex tanked 387.73 points or 0.47% to settle at 82,626.23. During the day, it dropped 528.04 points or 0.63% to 82,485.92.

The 50-share NSE Nifty declined 96.55 points or 0.38% to 25,327.05.

Banking, FMCG, and IT shares fell due to profit-taking while energy, realty, and metal shares emerged as gainers.

Among Sensex firms, HCL Tech, ICICI Bank, Titan, Trent, Kotak Mahindra Bank, Hindustan Unilever, Mahindra & Mahindra and HDFC Bank were the major laggards.

However, Adani Ports, Bharti Airtel, SBI, NTPC and Sun Pharma were among the gainers.

All Adani group stocks, including Adani Power, Adani Total Gas, Adani Green Energy, Adani Enterprises and Adani Energy Solutions rallied up to 13% after markets regulator Sebi cleared billionaire Gautam Adani and his group of stock manipulation allegations made by US short-seller Hindenburg Research.

Sebi probe found that fund transfer between group companies did not fall foul of any regulation.

Shares of Adani Power zoomed 12.40%. The stock hit its 52-week high level during the day. Adani Total Gas surged 7.35%, Adani Green Energy jumped 5.33%, Adani Enterprises Ltd climbed 5.04%, NDTV edged higher by 4.98% and Adani Energy Solutions rallied 4.70% on the BSE.

Sanghi Industries advanced 1.41%, ACC climbed 1.21%, Adani Ports went up by 1.09% and Ambuja Cements (0.28%).

"The Indian equity market witnessed profit-booking after a sustained multi-session rally, driven by anticipation of the FED entering an easing cycle. Positive developments in US-India trade negotiations and improved global liquidity conditions continued to offer a cushion to investor sentiment," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The BSE smallcap gauge went up by 0.16% while midcap index dipped 0.09%.

Among sectoral indices, consumer durables dropped 0.52%, financial services (0.42%), FMCG (0.39%), BSE Focused IT (0.39%), IT (0.30%) and auto (0.27%).

Utilities jumped 1.56%, power (1.30%), oil & gas (0.67%), realty (0.46%) and telecommunication (0.40%).

On the weekly front, the BSE benchmark jumped 721.53 points or 0.88%, and the Nifty climbed 213.05 points or 0.84%.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index settled lower while Hong Kong's Hang Seng ended in positive territory.

Markets in Europe were trading higher. US markets ended higher on Thursday.

Global oil benchmark Brent crude dipped 0.55% to USD 67.07 a barrel.

Foreign institutional investors (FIIs) bought equities worth ₹366.69 crore on Thursday, according to exchange data.

On Thursday, the Sensex rallied 320.25 points or 0.39% to settle at 83,013.96. The Nifty climbed 93.35 points or 0.37% to 25,423.60.