Markets: Heading into Trump II era, bourses bounce back; Sensex, Nifty up 2%

Virendra Pandit

New Delhi: As Thursday’s market tremors, triggered by a report about a US probe into Adani Group in an alleged bribery case, calmed, the Indian bourses bounced back after several days of market corrections and Sensex and Nifty settled more than 2 percent on Friday, demonstrating investors’ overall confidence in the rising India story, and the speculation that the Adani case may fizzle out soon the way the  Hindenberg claims did.

As the markets opened on Friday, Indian benchmark indices showed resilience, supported by positive global cues. By the closing bell, the Sensex zoomed 1961.32 points, or 2.54 percent, closing at 79,117.11, while Nifty gained 524.50 points, or 2.25 percent, to close at 23,874.40.

The market recovery came just a day after the Adani Group witnessed its sharpest decline of up to 20 percent since the Hindenburg controversy in 2023, losing Rs. 2.2 lakh crore in market capitalization on Thursday.

After the opening bell on Friday, however, 20 of the 30 stocks on the BSE Sensex traded higher, with gains of up to 1.17 percent, led by SBI, ICICI Bank, Tata Motors, IndusInd Bank, and Tech Mahindra. Among the top drags were Adani Ports & SEZ (down 3.28 percent), followed by TCS, ITC, Titan, and Nestle India.

On the Nifty 50, 40 of the 50 stocks traded higher, with gains led by HDFC Life (up 1.33 percent), followed by ONGC, SBI, Tata Motors, and ICICI Bank, while losses were capped by Adani Enterprises (down 2.48 percent), Adani Ports & SEZ, TCS, Titan, and Axis Bank.

All the sectoral indices traded higher, with gains led by the PSU Bank index (up 1.75 percent), followed by Realty and Oil.

In the broader markets, meanwhile, the Nifty Midcap 100 was higher by 0.62 percent and the Nifty Smallcap 100 was ahead by 0.71 percent.

The risk gauge, India VIX, was lower by 2.20 percent.

Indian equity benchmarks declined on Thursday as the selloff in the Adani group added to the woes of investors, reeling from the pressure of continuous selling by foreign portfolio investors (FPIs) and weak corporate results in the September quarter.

The benchmark BSE Sensex had ended the previous session at 77,156, a decline of 423 points or 0.5 percent, while the Nifty 50 finished at 23,350, a drop of 169 points or 0.7 percent.

However, the correction on Thursday was more modest than what it was in the aftermath of allegations of market manipulation against the Adani group by Hindenburg Research, a controversial American short-seller.

Markets in the Asia-Pacific region mostly rose on Friday, tracking gains on Wall Street.

Japan’s Nikkei 225 jumped 0.78 percent while the broad-based Topix rose 0.53 percent.

Australia’s S&P/ASX 200 was ahead by 0.92 percent, South Korea’s Kospi was higher by 1.12 percent while the small-cap Kosdaq was ahead by 0.81 percent.

Hong Kong’s Hang Seng index was trading 0.35 percent higher, while mainland China’s CSI 300 was nearly flat with a positive bias, up 0.02 percent. The Shanghai Composite was lower by 0.16 percent.

Bitcoin soared and is closing in on the USD 100,000 milestone. The world’s largest cryptocurrency has gained more than 40 percent since Donald Trump won the November 5 election, driven by expectations that his administration will be crypto-friendly. It gained 3.75 percent to USD 98,005.00. Ethereum rose 8.77 percent to USD 3,350.80.

Markets are also eyeing Trump’s pick for Treasury Secretary, who will play a key role in implementing his agenda of tariffs, tax cuts and deregulation.

The US dollar rose in choppy trading as investors assessed declining weekly joblessness claims, suggesting labor-market strength, and comments from two Federal Reserve governors on the path of interest rates.

The dollar index, which measures the greenback against a basket of currencies, rose 0.37 percent to 107, reaching a 13-month high.

Oil prices settled up about 2 percent after Russia and Ukraine exchanged missiles, raising crude supply concerns. Brent crude futures rose 1.95 percent to USD 74.23 per barrel, while US West Texas Intermediate crude futures increased 2 percent to USD 70.10.

Spot gold rose, on track for the fourth-consecutive session of gains after hitting a more than one-week high. It rose 0.8 percent to USD 2,671.28 an ounce, while the US gold futures settled 0.9 percent higher at USD 2,674.90.