Equity benchmarks surged more than 1.5% on Friday in the wake of U.S.-based GQG Partners investing almost $1.9 billion in four Adani Group firms and aided by ‘strong’ buying by foreign funds, analysts said.
The S&P BSE Sensex rose 899.62 points, or 1.53%, to 59,808.97. State Bank of India led gains, surging 5.11%, with Bharti Airtel (3.3%), Reliance (2.46%), ITC (2.42%) and Tata Steel (2.2%) also rallying. The NSE Nifty-50 index added 1.57% to close at 17,594.35. The top Nifty-50 gainers included Adani Enterprises (16.6%) and Adani Power (9.76%).
“PSU banks led the sectoral rally as reports of foreign investment in Adani stocks helped the sector in recouping sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services.
“After the near $2 billion investment by GQG Partners in Adani Group, the stock market has heaved a sigh of relief, creating a kind of floor for Adani group stocks,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities.
The investment in Adani should support the banks, especially PSU banks, which were hammered earlier, despite good performance due to fear of their exposure to the Adani Group, he added.
