By Bharath Rajeswaran
(Reuters) -Indian shares rose on Friday as financials rebounded from last session’s sharp drop, while most Adani group stocks continued to fall after U.S. prosecutors indicted the conglomerate’s founder Gautam Adani on Thursday over alleged bribery and fraud.
The NSE Nifty 50 added 1.04% to 23,590.82 points, as of 10:21 a.m. IST, while the BSE Sensex gained 1.02% to 77,934.55.
Highest weighted financials and banks added about 1% each.
IT companies, which earn a significant share of their revenue from the U.S., climbed 1.8% on the back of strong labour market data in the U.S.
On the other hand, seven of the 10 Adani group stocks logged losses at the open. Adani Total fell 1.5%, while Adani Energy, down 8.5%, dropped the most.
Adani Enterprises and Adani Ports fell about 3% each and were the top losers on Nifty 50. The stocks extended their decline to the second session even as the group dismissed the accusations as “baseless”.
“Markets trajectory is unlikely to be influenced heavily by Adani group stocks since there are only two of them in the benchmark Nifty 50, with not much weightage as well,” said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
“While there is a rise in benchmarks on the day, led by financials’ rebound, a sustained recovery requires reversal of foreign outflows and improvement in earnings.”
Among individual stocks, State Bank of India rose 2.2% after Jefferies reiterated the country’s largest public lender as one of its top picks in the sector, citing stable asset quality and rising recoveries.
SJVN climbed 6% after deal with the Rajasthan government to develop renewable energy.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D’Souza and Sumana Nandy)
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