Adani Group, IT Stocks Lift Markets Amid Focus On US Debt Ceiling Talks

Indian shares advanced on Tuesday, powered by information technology and Adani group of stocks, even as markets kept an eye on the US debt ceiling talks.

The blue-chip Nifty 50 index was up 0.41% at 18,391.50 as of 10:08 a.m. IST, while the benchmark S&P BSE Sensex rose 0.33% to 62,165.70.

Ten of the 13 major sectoral indexes advanced, with the metal index jumping nearly 3%. Adani Enterprises Ltd, which has a weightage of 17% in the metal index, jumped over 12% and was the top Nifty 50 gainer.

All the Adani group stocks surged between 2% and 13%, and extended gains after markets regulator Securities and Exchange Board of India (SEBI) found no conclusive evidence after a probe into suspected violations in overseas investments in the group.

The Supreme Court’s expert panel has ruled out a regulatory failure around the allegation of price manipulation.

“The high integrity of the members of the panel must have given confidence to investors to buy the beaten down (Adani) stocks,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Bharat Petroleum Corporation Ltd rose over 2% and was among the top Nifty 50 gainers. The oil refiner reported a rise in fourth-quarter net profit, post-market hours on Monday.

High-weightage IT stocks rose nearly 1%. A report from credit ratings provider S&P Global Ratings, on Monday, said Indian IT companies have the resilience to downside risks due to strong balance sheets, high recurring cash flows, and execution track record.

While the debt ceiling talks in the U.S. did not yield an agreement on Monday, both US President Joe Biden and House Republican Speaker Kevin McCarthy vowed to continue negotiations.

Asian markets advanced on hints of progress in U.S. debt ceiling talks and strong macroeconomic data from Japan.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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