The BSE Sensex declined by 421.80 points (0.54%) to settle at 77,156.80, fluctuating within a range of 76,802.73–77,711.11. Similarly, the NSE Nifty50 dropped 168.80 points (0.72%) to end at 23,349.90, trading between 23,263.15–23,507.30.
The sell-off was led by a massive plunge in Adani Group stocks, following bribery allegations against Gautam Adani and other executives. Broader markets followed the downward trend, with Nifty Smallcap 100 and Nifty Midcap 100 indices falling 0.30% and 0.46%, respectively.
The India VIX, a measure of market volatility, rose 2.09% to settle at 15.99 points, reflecting the heightened uncertainty during the session.
Impact on the stock market
Sectoral indices: Red across the board
Except for Nifty IT, Realty, and Private Bank, all sectoral indices ended in the red:
- Biggest losers:
- Nifty PSU Bank: Down 2.1%
- Nifty Media: Dropped 2.2%
- Nifty Metal: Fell 2.0%
- Outperformers:
- Power Grid, UltraTech Cement, Hindalco, Apollo Hospitals, and Grasim emerged as gainers, with increases of up to 3.25%.
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| Sector/Index | Performance |
| IT & BPM sector | 0.49% |
| Healthcare sector | -0.17% |
| Oil & Gas sector | -1.48% |
| Real estate sector | 0.93% |
| PSU Bank in India | -2.70% |
Top gainers today
| Company | Price | Change % |
| Power Grid Corp Share Price | 325.90 | 3.44 |
| UltraTechCement Share Price | 10,954.85 | 1.72 |
| Hindalco Share Price | 648.05 | 1.26 |
| Grasim Share Price | 2,534.85 | 1.06 |
| HCL Tech Share Price | 1,836.35 | 0.87 |
Top losers today
| Company | Price | Change % |
| Adani Enterpris Share Price | 2,183.65 | -22.61 |
| Adani Ports Share Price | 1,114.65 | -13.57 |
| SBI Life Insura Share Price | 1,477.95 | -2.95 |
| NTPC Share Price | 356.15 | -2.88 |
| SBI Share Price | 780.75 | -2.77 |
Market aftermath: Impact on stocks
Indus Towers gains traction
Indus Towers gained 7% during the session, supported by positive coverage from Axis Capital, which initiated an ‘Add’ rating with a target price of ₹356.
- Key drivers:
- Signs of recovery after challenging years.
- Benefits from Vodafone Idea’s network expansion and Bharti Airtel’s 5G rollout.
- The Supreme Court’s ruling allowing Cenvat credits has reduced the company’s contingent liability by ₹3,704 crore.
Having already outperformed the Nifty50’s 7% gain this year with a 63% YTD rise, Indus Towers remains a strong contender in the telecom infrastructure space.
Honasa Consumer faces sharp decline
Shares of Honasa Consumer (Mamaearth’s parent company) hit their 10% lower circuit at ₹237.40, marking a three-day decline of 36%.
- Earnings disappointment:
- Reported a ₹19 crore net loss for Q2FY25, compared to a ₹29 crore profit in Q2FY24.
- Revenue fell 6.9% YoY to ₹462 crore.
- Inventory concerns: The AICPDF alleged that unsold inventory worth ₹300 crore is burdening distributors, a claim the company denied, citing a total inventory of ₹40.69 crore.
While Honasa has initiated structural changes to improve its distribution model, analysts remain cautious about its recovery timeline.
Also Read: Honasa Consumer shares fall 34% on weak Q2 Results
Enviro Infra Engineers IPO creates buzz
The upcoming Enviro Infra Engineers IPO, scheduled to open on November 22, is defying the weak market sentiment with strong investor interest.
- Grey market premium (GMP): The IPO is commanding a 22% premium, with shares trading ₹32-35 above the issue price in the grey market.
- Price band: Set at ₹140-148 per share, the IPO is expected to deliver solid listing gains.
- Contrast with NTPC Green IPO: While NTPC Green Energy has shown a flat GMP trend, Enviro Infra Engineers stands out with robust demand.
The company, specialising in water and wastewater treatment projects, has carved a niche in developing sewage treatment plants, making it a promising prospect for investors.
Crude oil: Geopolitical tensions drive prices
Crude oil futures edged higher on Thursday morning, driven by escalating geopolitical tensions, despite a rise in US inventories.
- Prices:
- Brent crude: Up 0.27% at $73.01/barrel.
- WTI crude: Increased 0.29% to $68.95/barrel.
- Geopolitical risks:
- Reports of Ukraine attacking Russian infrastructure and the US vetoing a UN ceasefire resolution in Gaza have raised supply disruption fears.
While geopolitical factors pushed prices higher, the US EIA report showed an increase in crude inventories by 0.5 million barrels, capping the gains.
Conclusion
The Indian stock market on 21st November 2024 was marked by heightened volatility, led by the Adani Group sell-off, weak performance across sectors, and cautious sentiment among investors. Despite the turbulence, some positive stories, like Indus Towers’ growth prospects and the strong demand for the Enviro Infra Engineers IPO, offered a glimmer of hope.
As global uncertainties and corporate controversies weigh on market sentiment, investors are advised to adopt a cautious approach, focusing on fundamentally strong stocks and emerging opportunities in niche sectors.
For more stock market insights, check out the StockGro blog.
