Why Sensex is in the green but Nifty, Bank Nifty in red territory
4 min read . Updated: 02 Feb 2023, 12:10 PM IST
Premium- Bank Nifty is under pressure due to concerns on banks' respective debt exposure to Adani group companies, say stock market experts
After paring mid-sessions gains on Union Budget day, Indian stock market ended with weak bias. However, the interesting part on Wednesday market close was difference of territory chosen by the key benchmark indices. Nifty and Bank Nifty closed in the red territory whereas BSE Sensex ended in green. In early morning deals as well, 30-stock index Sensex is up by near 100 points whereas Bank Nifty and Nifty index is still in red zone. Nifty today is down by near 50 points while Bank Nifty index has lost around 200 points in near one and half hour of trade on Thursday.
According to stock market experts, presence of two Adani stocks in Nifty 50 index and heavy sell off in Adani group stocks putting banking stocks under pressure is the major reason for Sensex trading green while Nifty and Bank Nifty trading red for last two sessions. However, they said that it's just a matter of few sessions as the Reserve Bank of India has asked from the Indian banks to share their respective debt positioning in Adani group companies.
Speaking on the diverse trend show by Sensex and Nifty for last two sessions, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Nifty is trading red because two Adani group stocks Adani Ports and Special Economic Zone and Adani Enterprises are amongst 50 listed stock there. Apart from this, a good number of banking stocks including SBI, IndusInd Bank, ICICI Bank, HDFC Bank, Axis Bank have good weight in the 50-stock exchange. Due to mass sell off triggered in Adani group stocks after short seller Hindenburg Research raised concern over the debt exposure of Adani group companies. Hence, most of the banking stocks have remained under pressure for last one week erasing its gains in near term."
Explaining the trickle down effect of heavy beating in Adani stocks, Ravi Singhal, CEO at GCL Broking said, "As market is concerned about the debt exposure of Adani group companies in Indian banks, we are witnessing sell off in banking, which is one of the major reasons for Bank Nifty trading red. However, the RBI has come in action and it has sought details of respective banks exposure in Adani group companies that is expected to clear the confusion prevailing on Dalal Street sentiments. Hopefully, this trend may not last long once the banks come out with clear picture on their debt exposure in Adani group companies."
Among Nifty listed Adani stocks, Adani Enterprises share price has lost to the tune of 50 per cent in last one month whereas Adani Ports share price has crashed over 42 per cent in this period.
Among banking stocks listed at Nifty 50 index, SBI share price has dipped around 15 per cent in last one month, IndusInd Bank share price has corrected around 15 per cent, ICICI Bank share price has lost around 5.50 per cent in last one month.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
