Adani shares rise, oil slips despite output cuts & more

Nifty50: 18,599 ▲5 (+0.03%)
Sensex: 62,792 ▲ 5 (+0.01%)

Namaste, friends !

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• Markets end flat after a range-bound session 
• In all, 28 of the Nifty50 stocks closed in the green
• The slide in IT index overshadowed gains in the Realty and Auto indices

Among the Nifty sectoral indices, Realty (+1.1%) and Auto (+1.0%) were the top gainers, while IT (-1.8%) and PSU Bank (-0.2%) were the top losers.

What’s trending

⭐Adani shares rise on debt repayment  

Adani Group stocks climbed in the early morning trade, reacting to the repayment of loans worth $2.65 billion by the conglomerate. Shares of Adani Enterprises, Ambuja Cement, ACC and Adani Power rose in the range of 2 to 4.7% intraday. Market experts believe the debt payoff is positive for the company and sends strong signals to investors and markets. 

⭐ L&T bags new orders 

Construction firm said one of its subsidiaries, buildings and factories (B&F) business has secured a major order, ranging ₹1,000 to ₹2,500 crore in the domestic market. This new order involves construction of commercial towers at two separate locations in Mumbai.  

⭐JK Cement announces new acquisition 

Shares of cement manufacturer rose over 3% intraday, This comes after the company acquired 100% stake in Toshali Cements for total consideration of ₹157 crore. Toshali Cements currently has two manufacturing units in Odisha state. This new acquisition will help JK Cement expand its footprints in the Eastern region. 

⭐Oil slips despite output cuts

Crude oil prices tumbled by over 2% in today’s trade, after witnessing a strong rally in the previous session. Experts believe concerns such as slowdown in the US and Europe markets along with lower growth in China and stronger oil supplies from non-OPEC nations outweighed Saudi Arabia’s decision to cut oil production.     

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In Focus

Tech stocks tumble

The Nifty IT index witnessed major selling pressure today, falling nearly 2%. All constituents of the index, including TCS, HCL Tech, Infosys and others closed in the red. In fact, the top five Nifty50 losers are all tech stocks. What are the key reasons behind this sudden meltdown? Let's find out.

US-based firm cuts revenue guidance 

The fresh sell-off came after the US-based IT service provider EPAM revised its revenue guidance for the second time this year. The company has cut its growth expectation by 13% over two consecutive updates. 

The company said the guidance cut comes amidst a slowdown in discretionary spendings in the US markets. Market experts believe this is a sign of caution for the Indian IT industry as the US is a crucial market for domestic firms and any slowdown could eventually impact earnings of tech companies.

Amidst this concern, the Nifty IT index witnessed its biggest sell-off since 17 April 2023. Last month, the index witnessed a surprise rally rising nearly 6% despite earnings remaining on the softer side due to the economic slowdown in the key markets, including the US and Europe.

With this background, it would be interesting to see how tech firms perform in the first quarter of FY24.

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