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Sensex falls 1,100 points and Nifty around 17,550

Today Sensex plunges 1,100 points, Nifty around 17,550; Adani group stocks under pressure. Equity benchmarks sensex and Nifty fell on Friday dragged down by banking shares. From the Sensex pack, ICICI Bank, HDFC, Axis Bank, State Bank of India, Sensex slips over 1,100 points in closing trade.

Adani Enterprises’ follow-on public offering (FPO), the largest ever in the history of Indian capital markets, received bids for 2.66 lakh shares or 1 percent of the issue size of 4.55 crore shares on January 27, the first day of bidding. Shares of Adani Group fell by 20 percent. 2.37 lakh crore drop in the group’s market capitalization in 2 days. Gautam Adani reached number seven in the list of world’s richest people.

Retail investors, employees and high net-worth individuals (HNIs) have started putting in bids for the offer but qualified institutional buyers (QIBs) have not bought a single share yet. However, the anchor book of nearly Rs 6,000 crore, a part of QIB book, was fully subscribed on January 25. Accordingly, the issue size was reduced to 4.55 crore shares, from 6.47 crore shares initially.

Sensex’s 1,100-point rally on Friday was largely led by a lesser-than-expected US CPI inflation print, which raised hopes of end to the Fed’s aggressive rate hike cycles. A strengthening dollar, which is weighing on emerging market currencies of late, took a U-turn, sending Asian markets higher. 

US core CPI inflation moderated noticeably to 0.272 per cent month-on-month in October from 0.576 per cent in September, falling short of the market consensus. Overall, US CPI inflation fell to 6.284 per cent YoY in October from 6.631 per cent a month ago.

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