Stocks from Adani Enterprises keep Nifty in red; Sensex trading flat

The broader NSE Nifty declined 170.35 points to 17,445.95 in initial trade. However, later both the benchmarks were quoting in the green. The Sensex traded 177.91 points higher at 59,885.99, while the Nifty quoted 25.50 points up at 17,605.95.

A day after withdrawal of Adani Enterprises FPO (Follow-on Public Offer), Adani group company's bonds on Thursday (February 2) fell down to distressed levels. Bonds that were issued by Adani Green Energy and Adani Ports and Special Economic Zone (APSEZ) received a maximum beating in the global markets.

In the initial trade, the equity benchmarks fell, but later bounced back to trade in the positive territory, amid firm global market trends and foreign fund inflows. The 30-share BSE benchmark Sensex had fallen 492.46 points to 59,215.62 in early trade.

The broader NSE Nifty declined 170.35 points to 17,445.95 in initial trade. However, later both the benchmarks were quoting in the green. The Sensex traded 177.91 points higher at 59,885.99, while the Nifty quoted 25.50 points up at 17,605.95.

From the Sensex pack, Bajaj Finance, NTPC, Asian Paints, Tata Steel, HDFC, HDFC Bank, Reliance Industries and Power Grid were the major laggards. ITC, UltraTech Cement, IndusInd Bank, Titan and Maruti were among the winners. 

On Wednesday, Adani Enterprises said it has decided not to go ahead with its Rs 20,000-crore FPO and will return the proceeds to investors. The announcement came a day after the company's FPO was subscribed fully on the last day of the offer on Tuesday.

"Meanwhile, the situation in the mother market of the US is slowly improving. The expected reduction in rate hike by 25 basis points and the slightly less hawkish commentary are positive for global equity markets," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

On Wednesday, the Sensex had climbed 158.18 points or 0.27 percent to settle at 59,708.08. In contrast, the Nifty declined 45.85 points or 0.26 percent to end at 17,616.30.

International oil benchmark Brent crude climbed 0.74 percent to USD 83.45 per barrel. Foreign Institutional Investors (FIIs) turned buyers as they bought shares worth Rs 1,785.21 crore on Wednesday, according to exchange data.

(With inputs from PTI)