Indian shares logged gains on Friday, narrowing their weekly losses, as a bigger-than-expected drop in U.S. unemployment claims allayed fears of a recession in the world’s top economy. File.
| Photo Credit: ANI
Indian shares are likely to open flat on Monday (August 12, 2024), with the Securities and Exchange Board of India (SEBI) asking investors to remain calm following short-seller Hindenburg Research’s allegations against the head of the country’s markets regulator.
The Gift Nifty was trading at 24,362.5, as of 07:47 a.m IST, indicating that the benchmark Nifty 50 will open near its Friday’s close of 24,367.5.
Over the weekend, U.S.-based Hindenburg alleged that Madhabi Puri Buch, the head of SEBI, previously held investments in offshore funds also used by the Adani Group.
Ms. Buch denied the allegations and said all investments had been duly disclosed.
In a separate statement, the markets regulator asked investors to remain calm and exercise due diligence before reacting to the report.
The Association of Mutual Funds in India — a lobby for mutual funds — also stepped in to assure investors, saying India’s financial system is secure and transparent.
These allegations do not have any implications for corporate earnings or macro fundamentals of Indian markets. At best, they may have a minor, perception-driven impact, said two analysts, on a likely Street reaction to the U.S. short-seller’s allegations.
Indian shares logged gains on Friday, narrowing their weekly losses, as a bigger-than-expected drop in U.S. unemployment claims allayed fears of a recession in the world’s top economy that sparked a slide in global stocks earlier in the week.
Foreign institutional investors (FIIs) snapped selling streak on Friday, buying a net ₹4.07 billion ($50 million) of shares. FIIs had offloaded shares worth ₹228.57 billion in the previous five sessions.
Asian markets opened higher, with the MSCI Asia ex-Japan index adding 0.5%. Investors await U.S. consumer prices data on Wednesday to gauge the health of the U.S. economy. Wall Street equities closed higher on Friday.
STOCKS TO WATCH
** Adani Group companies such as Adani Enterprises and Adani Ports will be in focus after Hindenburg Research alleged SEBI chief had investments in offshore funds, also used by the group.
** Honasa Consumer reports a rise in consolidated net profit in June quarter.
** Amara Raja Energy & Mobility’s unit signs a deal with Piaggio Vehicles, Indian subsidiary of Italy’s Piaggio Group.
