Stock market today: Nifty 50, Sensex close higher on rebound in Adani stocks; smallcaps outperform

Indian Stock Market: Indian benchmark indices experienced significant volatility in today’s session, November 27, as a rebound in Adani Group stocks was offset by weak performances from index heavyweights, leading to wide fluctuations throughout the day. However, the indices managed to close the day with healthy gains.

Positive developments in the Middle East also contributed to the rebound, with Israel and Hezbollah agreeing to a ceasefire. This eased geopolitical tensions and helped cool down crude oil prices, providing further support to the markets.

Additionally, minutes from the Federal Reserve’s November meeting, released on Tuesday, revealed that officials are confident inflation is easing, and the labor market remains strong. This has led to expectations of further interest rate cuts, though they will likely be implemented at a gradual pace.

On the back of positive global cues and a sharp rebound in Adani stocks, the Nifty 50 ended the session with a solid gain of 0.33%, closing at 24,274, while the Sensex also posted a notable gain of 0.30%, settling at 80,246.

The broader market outperformed in today’s trade, with the Nifty Midcap 100 index rising by 0.65%, closing at 56,279. The Smallcap 100 index saw an even sharper gain of 1.35%, ending at 18,511.95.

Among the sectoral indices, Nifty Energy, Nifty Media, Nifty PSE, and Nifty Metal ended the session with gains ranging from 0.70% to 1.50%. On the downside, Nifty Pharma was the biggest laggard, falling by 0.65%, followed by Nifty Realty, which declined by 0.5%, ending its three-day winning streak.

Additionally, the Nifty IT index failed to maintain its strong gains and concluded the session with a slight drop of 0.21%.

Commenting on the today's market performance, Vinod Nair, Head of Research, Geojit Financial Services said, "Indian indices continue to exhibit positive upside as a result of healthy consolidation and the likelihood of strong H2FY25 earnings forecasts. In Asia, market sentiment was mixed due to the potential tariff impositions by the US.

"Meanwhile, the Chinese market rebounded on expectations of additional stimulus measures. The global sentiment is positive as the US FOMC minutes and a truce in the Middle East were optimistic. Decelerating inflation and robust growth prospects could lead to continued rate cuts by the Federal Reserve," he added.

Adani Group stocks surge after clarification on bribery charges

All 11 Adani Group stocks closed higher in Wednesday's session following a clarification issued by Adani Green Energy regarding bribery charges involving Gautam Adani and others. Adani Total Gas was the top gainer among the group, surging by 19.8%, followed closely by Adani Power, which rallied 19.5%.

Other group stocks, including Adani Enterprises, Adani Green Energy, Adani Energy Solutions, Adani Wilmar, and Adani Ports & SEZ, also posted strong gains, ranging from 6.3% to 11.5%.

In a release on Wednesday, Adani Green Energy clarified that “Gautam Adani, Sagar Adani, and Vineet Jain have not been charged with any violation of the FCPA (Foreign Corrupt Practices Act) in the counts set forth in the indictment by the US DOJ (Department of Justice) or the civil complaint by the US SEC (Securities and Exchange Commission).”

The release further noted that the directors face charges on three counts in the criminal indictment: (i) alleged securities fraud conspiracy, (ii) alleged wire fraud conspiracy, and (iii) alleged securities fraud.

The company further said that it faces monetary penalties under the civil complaint, but said the amount has not been quantified. In a separate statement, the group said it had incurred a loss of nearly $55 billion in market value across its 11 listed companies following the US indictment.

Ola Electric records biggest 1-day jump in over 3 months

Ola Electric shares surged by 20% in today’s trade, reaching their highest level since mid-October, touching ₹88.10. This spike marks the largest intraday jump for the stock since August 16, following a report from global brokerage firm Citi Research, which initiated coverage on the stock with a target price of ₹90 per share.

Citi Research believes that the company’s profitability will improve as capacity utilization increases. The brokerage also highlighted the service issues that Ola Electric has faced in recent months, which have also affected the stock price.

Citi noted that if the product offering remains attractive, these service challenges will likely ease over the medium term as the company’s back-end supply chain improves.

Furthermore, Citi Research believes that India’s larger electric vehicle (EV) original equipment manufacturers (OEMs) like Ola Electric could dominate the market and remain profitable with an optimal cost structure and industry consolidation.

The brokerage also highlighted key risks for Ola Electric, including lower sales of two-wheeler EVs, heightened competition, negative perceptions regarding product and service quality, and continued losses.

Nifty 50: Key levels and trends

Rupak De, Senior Technical Analyst, LKP Securities, said, "The Nifty has been consolidating over the past three days following a sharp up move earlier. On the higher side, it faces resistance at 24,420; a decisive breakout above this level could trigger a significant move toward higher levels. On the lower side, support is positioned at 24,100. The index is likely to remain range-bound until it makes a directional move on either side."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.