Indian stock market witnessed a broad-basing selling across indices on Thursday, November 21, 2024. The major draggers of the day were Adani Group stocks that nosedived by 10% to 25% in a single day, after an indictment against Gautam Adani in the US for an alleged bribery scheme and fraud. Apart from this, major selloffs in PSU banks, oil and gas, and FMCG stocks further added to the woes. Heavyweights like Reliance Industries, Hindustan Unilever, ITC, and Adani Enterprises contributed heavily to pulling back Sensex and Nifty.

During the November 21 trading session, Sensex plummeted by 775.65 points to hit an intraday low of 76,802.73, while Nifty 50 shed as much as 255.35 points to touch an intraday low of 23,263.15.

Here are 5 key draggers of the India stock market on November 21, 2024:

1. Adani Group Stocks In Bloodbath:

All Adani Group stocks faced panic selling so much so that they tumbled by 10% to 25% on November 21, 2024. Four of the Adani stocks touched their lower circuits including heavyweights Adani Enterprises and Adani Ports. Together, nearly Rs 2.79 lakh crore of investors’ wealth has been wiped out from Adani Group.

Adani Group’s flagship Adani Enterprises dipped by 23%, while Adani Ports froze at a 20% lower circuit, Adani Green Energy plunged by 19.5%, Adani Power shed about 18%, Adani Energy Solutions slipped to hit a 20% lower circuit and 52-week low, and Ambuja Cement shares were down by 17.6%.

Other Adani stocks such as Adani Total Gas also fell by over 18%, ACC plunged by 14.5%, NDTV shed 14%, and lastly, Adani Wilmar plummeted to a 10% lower circuit and hit a new 52-week low as well.

Together, in the early trade of November 21, Adani Group stocks’ cumulative market cap fell by about Rs 278,778 crore.

2. Oil & Gas Stock Drag:

The Nifty Oil & Gas index dipped to hit an intraday low of 10,340.60. Currently, the index is down by 1.44%. Adani Total Gas was the major dragger. Further, stocks like Aegis Logistic, Indraprastha Gas, BPCL, and heavyweights like Reliance Industries, ONGC, and Indian Oil plunged by 1.5% to 5.5% respectively. Especially, the decline in Reliance heavily impacted benchmarks since it is the largest company in India in terms of market share.

As per Rahul Kalantri, VP Commodities, Mehta Equities, crude oil prices were unable to sustain the previous session’s gains, plunging once again amid larger-than-expected U.S. oil stockpiles, the restoration of production from Norway’s oil field, and a rebound in the dollar index. Both crude oil and gasoline inventories surged beyond expectations, applying downward pressure on oil prices.

Meanwhile, the dollar index rebounded, crossing the 106.50 mark once again, limiting any gains for crude oil. However, escalating tensions in the Russia-Ukraine conflict and the potential for additional stimulus measures from China may offer some support to prices. Adding Kalantri said that crude oil prices are expected to remain volatile.

3. Metal Stocks Lose Shine:

The Nifty Metal index dropped by 3% to hit an intraday low of 8,652.15. Adani Enterprises was the worst hit, followed by Jindal Stainless, Hindustan Zinc, APL Apollo and NMDC stock which traded lower.

4. PSU Bank Nosedive:

Nifty PSU Bank index plunged by over 5% to hit an intraday low of 6,163.75. All PSU bank stocks are in deep red. Bank of Baroda, PNB, State Bank Of India, Canara Bank, Bank of India, Indian Bank, UCO Bank, and Central Bank of India, Bank of Maharashtra, and Union Bank of India fell by 2% to 7%.

5. FMCG Stocks Toppled

Nifty FMCG index nosedived by 1.57% or 885 points to hit an intraday low of 55,493.25. Stocks like Britannia, ITC, Varun Beverages, Balrampur Chini, HUL, Colgate, and UBL were worst hit.

There were global factors that led bears in Indian stock market as well. As per Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, the escalation of tensions in the Ukraine-Russia war can weigh on markets. The element of uncertainty caused by the escalations is high and therefore most market participants are likely to be in a wait and watch mode. However, any sharp slide in the market appears unlikely since the mother market US has largely downplayed the escalation.

Vijayakumar added, sectors to watch are hotels, aviation, banking, telecom, IT and pharma which are doing well. FMCG, cement, petroleum refining and metals are weak. Mutual fund schemes in Banking are ideal for investment now. Systematic Transfer Plans (STPs) can be done in this and largecap category.

Story first published: Thursday, November 21, 2024, 12:26 [IST]