Indian shares gain momentum as Adani Group stocks rally, IT stocks hindered by US debt ceiling uncertainty

Indian stocks rose on Tuesday, buoyed by a broad rally across sectors and supported by Al-Adani Group of Companieswhile declines in heavyweight IT stocks limited gains amid uncertainty over US debt ceiling talks.

The Nifty 50 index, the owner of the leading stocks, closed up 0.18 percent at 18348, while the S&P BSE Sensex index rose 0.03 percent to 61981.79.

Ten out of 13 major sectoral indices advanced, with metals jumping 2.59 percent. Adani Enterprises, which has a 17 percent weight in the metals index, jumped more than 13 percent and was the biggest gainer in the Nifty 50.

All shares of Adani Group It jumped between 0.3 percent and 14 percent and extended gains for a third session after India’s Securities and Exchange Commission, the markets regulator, scrapped a void in an investigation into suspected abuses in the group’s offshore investments.

The Supreme Court’s panel of experts ruled out regulatory failure in the price-fixing allegation.

“The high integrity of the panel members must have given confidence to the investors to buy the defeated (Adani) shares,” said VK Vijayakumar, chief investment analyst at Geojit Financial Services.

Debt ceiling talks

US debt ceiling talks did not produce an agreement on Monday, but US President Joe Biden and Republican House Speaker Kevin McCarthy vowed to continue negotiations.

However, IT uncertainty has been approximately 0.5 per cent. The index, which rose 2.5 percent in the previous session, was driving the rise of the markets, the biggest sectoral losers on Tuesday.

Among individual stocks, Divi’s Laboratories jumped 3.61 percent, extending its gains for the second session, after the manufacturer of active pharmaceutical ingredients reported underlying revenue and profits in the March quarter.

The stock has jumped more than 9 percent in the past two sessions and was among the biggest gainers in the Nifty 50 on Tuesday.