Key indices dropped sharply in truncated trading week on broad-based selling pressure on recessionary fears in the west and nervousness ahead of Union Budget. Sentiment was impacted adversely after Adani Group stocks tumbled after US-based Hindenburg Research LLC said it shorted Adani Group companies due to "brazen" market manipulation and accounting fraud. In the week ended on Friday, 27 January 2023, the S&P BSE Sensex lost 1,290.87 points or 2.18% to settle at 59,330.90. The Nifty 50 index dropped 423.30 points or 2.4% to settle at 17,604.35. The BSE Mid-Cap index fell 2.74% to settle at 24,338.84. The BSE Small-Cap index declined 3.64% to settle at 27,623.85. Weekly Index Movement:

The domestic equity benchmarks ended with modest gains on Monday, snapping a two-day losing streak amid positive cues from global peers. The barometer index S&P BSE Sensex advanced 319.90 points or 0.53% to 60,941.67. The Nifty 50 index added 90.90 points or 0.50% to 18,118.55.

Indices ended flat after a volatile session on Tuesday. Benchmark indices opened higher amid positive global cues and traded higher for the most part of the session. However, profit booking dragged the indices near the flat line in late trade. The barometer index, the S&P BSE Sensex added 37.08 points or 0.06% to 60,978.75. The Nifty 50 index ended flat at 18,118.30.

The domestic equity barometers ended with deep cuts on Wednesday. Trading was volatile due to monthly and weekly derivatives expiry on the NSE. The barometer index, the S&P BSE Sensex tumbled 773.69 points or 1.27% to 60,205.06. The Nifty 50 index lost 226.35 points or 1.25% to 17,891.95.

The domestic equity markets remained shut on Thursday (26 January 2023) on account of the Republic Day.

The domestic equity benchmarks ended with deep cuts after a weak session on Friday. The barometer index, the S&P BSE Sensex, tumbled 874.16 points or 1.45% to 59,330.90. The Nifty 50 index slumped 287.60 points or 1.61% to 17,604.35.

Stocks in Spotlight:

Adani Group stocks dropped sharply after US-based Hindenburg Research LLC said it shorted Adani Group companies due to "brazen" market manipulation and accounting fraud. Adani Transmission, Adani Ports and Special Economic Zone, Adani Wilmar, Adani Power, Adani Total Gas, Adani Green Energy and Adani Enterprises slumped.

Hindenburg, an US-based investment research firm that specializes in activist short-selling, made wide-ranging allegations of corporate malpractice following a two-year investigation into the Adani group companies.

In a statement issued to the media, Jugeshinder Singh, Group CFO, Adani, said: "We are shocked that Hindenburg Research has published a report on 24 January 2023 without making any attempt to contact us or verify the factual matrix. The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India's highest courts.

Reliance Industries (RIL) lost 4.49%. On a consolidated basis, net profit of RIL declined 2.8% to Rs 15,792 crore on 17.4% increase in net sales to Rs 2,17,164 crore in Q3 December 2022 over Q3 December 2021. RIL reported exceptional income of Rs 2,836 crore in Q3 December 2021.

ICICI Bank dropped 6.46%. The bank has reported net interest income of Rs 16465 crore in Q3 FY23 from Rs 12236 crore in Q3 FY22. Profit after tax rose to Rs 8312 crore from Rs 6194 crore.

Kotak Mahindra Bank fell 2.87%. The bank has reported net total income of Rs 7,753 crore in Q3 FY23 from Rs 5698 crore in Q3 FY22. Profit after tax rose to Rs 2,792 crore from Rs 2131 crore.

Maruti Suzuki India gained 3.33%. The auto major's standalone net profit zoomed 132.5% to Rs 2,351.3 crore on 25.52% jump in net sales to Rs 27,849.2 crore in Q3 FY23 over Q3 FY22.

Operating EBIT soared 131% to Rs 2,123 crore in Q3 FY23 from Rs 919 crore reported in Q3 FY22. Operating EBIT margin improved to 7.6% as on 31 December 2022 as against 4.1% as of 31 December 2021. Pending customer orders stood at about 363,000 vehicles at the end of this quarter out of which about 119,000 orders were for newly launched models, the company said.

Tata Motors surged 9.35%. The company reported a consolidated net profit of Rs 2,957.71 crore in Q3 FY23 as against a net loss of Rs 1,516.14 crore in Q3 FY22. Total revenue from operations increased 22.5% YoY to Rs 88,488.59 crore during the quarter.

Global Markets:

A widely watched gauge of German business sentiment from the Munich-based Ifo Institute showed “considerably less pessimistic expectations” in January.

The downturn in the US business activity eased slightly in January even as it contracted for the seventh straight month, survey showed on Tuesday. S&P Global said its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, shot off to 46.6 this month from a final reading of 45 in December.

The US economy grew faster than expected in the fourth quarter. Gross domestic product increased at a 2.9% annualized rate last quarter. The economy grew at a 3.2% pace in the third quarter.

S&P Global eurozone composite purchasing managers' index came in at 50.2 in January, up from 49.3 in December. The 50 mark separates expansion from contraction.