By Gitika Sharma
Even as Adani Group stocks rallied sharply after the Securities and Exchange Board of India (SEBI) rejected two of those against Hindenburg Research, foreign concerns dampened investor enthusiasm, leading India’s markets to close lower in Mumbai on Friday, September 20. The contrast served to highlight that locally bred regulatory clarity may cause episodic relief while foreign doubts are still major sentiment drivers.
Nifty 50 fell by 0.39 per cent and closed at 25,386.40, and Sensex fell 0.44 per cent and closed at 82,514.74 after a three-session upsurge. There was weak breadth in the markets, with all sectoral indices closing lower. Traders were exerting profits amid lingering worries about high crude oil prices, weak demand from China, and caution ahead of signals from the US Federal Reserve on its policy direction.
Contrary to the overall market, Adani Group stocks rallied strongly following the order of SEBI, with nearly a 9 per cent gain in Adani Enterprises and 5-7 per cent gains in Adani Ports, Adani Green Energy, and Adani Power. The order marked a significant event for the conglomerate, which has continued to be under scrutiny since a report released by Hindenburg in early 2023, which cited governance issues, overleveraging, and opaque practices to accuse the group of wrongdoing. For Adani, the harshly investigated conglomerate, SEBI’s order as a decision was both symbolically vindicating and helped restore the confidence of institutional investors and traders.
Analysts also cautioned, however, that the rise may remain company-specific. In the view of one Mumbai-based fund manager, “The Adani rally is of relevance for psychology, but the global liquidity, crude prices, and the stance of the Fed are still the deciding factors for the index.”
Meanwhile, strong selling in IT, FMCG, and bank stocks pulled benchmarks down and exposed risk aversion. Sentiment headwinds were compounded by the depreciation of the rupee against the US dollar.
The session reinforced a wider theme, namely, while relief tales for company-specific stocks can allow for occasional temporary rallies, the bigger picture path for the whole market is linked with overseas developments. For Adani as a company, SEBI’s decision is both symbolic and practical at a sensitive moment in time, showing regulatory backing. For Indian equities, the week ended as a reminder that headwinds from abroad, from oil prices to medium-term global monetary policy, are the dominant variable for direction.