The Indian stock market saw a notable recovery on November 27, with the Nifty 50 and Sensex closing higher, fueled by a rebound in Adani Group stocks. The market experienced significant volatility throughout the day but managed to settle with healthy gains by the close. The Nifty 50 ended with a gain of 0.33%, closing at 24,274, while the Sensex rose by 0.30%, finishing at 80,246.
The recovery in Adani stocks played a key role in the market's performance. All 11 Adani Group stocks ended the session higher, following a clarification from Adani Green Energy about bribery charges involving key figures in the company.
Adani Total Gas was the top gainer, surging by nearly 20%, with Adani Power closely following with a 19.5% increase. Other group stocks, including Adani Enterprises, Adani Green Energy, and Adani Ports & SEZ, saw strong gains between 6% and 11.5%.
This rally in Adani stocks helped offset weaker performances from some of the market heavyweights, particularly in the Nifty IT sector. Despite the positive momentum in the broader market, the Nifty IT index slipped slightly by 0.21%, unable to maintain its earlier gains.
The broader market performed well, with both the Nifty Midcap 100 index and the Smallcap 100 index seeing significant gains. The Nifty Midcap 100 index rose by 0.65%, closing at 56,279 points, while the Smallcap 100 index surged by 1.35%, ending at 18,511.95 points. The rally in small and mid-cap stocks reflected investor optimism in these segments, further supporting the market's upward movement.
Sectoral performance was also mixed. While sectors like Nifty Energy, Nifty Media, Nifty PSE, and Nifty Metal posted solid gains of up to 1.5%, the Nifty Pharma index was the biggest loser, falling by 0.65%.
Nifty Realty, which had been on a three-day winning streak, also saw a decline of 0.5%. The market's overall performance was bolstered by positive global cues, particularly developments in the Middle East.
The ceasefire agreement between Israel and Hezbollah helped ease geopolitical tensions, leading to a cooling of crude oil prices. This, in turn, supported investor sentiment in India.
Another key factor influencing the market was the release of the Federal Reserve's meeting minutes from November. The minutes revealed that US officials are confident that inflation is easing, and the labor market remains strong.
As a result, expectations are building for future interest rate cuts, although these will likely be gradual. This insight helped improve market sentiment globally and contributed to the optimism in the Indian stock market.
Looking ahead, the market appears to be in a consolidation phase, according to Rupak De, Senior Technical Analyst at LKP Securities. The Nifty 50 has been hovering in a range, and a breakout above the resistance level of 24,420 could trigger further upward momentum.
On the downside, support is seen at 24,100, and the market is expected to remain range-bound until it makes a decisive move in either direction.
In addition to Adani Group stocks, Ola Electric made headlines on November 27, with its shares surging by 20%, reaching their highest levels since mid-October.
This sharp rise followed a report from Citi Research, which initiated coverage on the stock with a target price of ₹90 per share. Citi highlighted that Ola Electric’s profitability would likely improve as its capacity utilization increases.
However, the report also pointed out the challenges the company has faced, including service-related issues, which have affected its stock price in recent months.
Citi Research believes that Ola Electric, along with other large electric vehicle (EV) manufacturers in India, is well-positioned to dominate the market, assuming an optimal cost structure and industry consolidation.
However, risks remain, including the possibility of lower sales, heightened competition, and perceptions around product quality and service.
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