Midday Market Update: Markets soar as Sensex jumps over 1,700 points; Nifty crosses 23,800 mark

Indian equity markets saw a strong resurgence on Friday, with benchmark indices reaching significant intraday highs, powered by a broad-based rally and a recovery in Adani Group stocks.

By 12:42 pm, the S&P BSE Sensex surged by 1,034.76 points, hitting 78,190.55, while the NSE Nifty50 rose 329.15 points to 23,679.05. This robust performance added approximately Rs 5 lakh crore to the total market capitalisation of the BSE.

Banking and IT stocks lead the charge

Key sectors like banking, financials, IT, and energy saw notable gains, with heavyweight stocks driving the rally. ICICI Bank, State Bank of India (SBI), Reliance Industries (RIL), Infosys, Tata Consultancy Services (TCS), L&T, and Bharti Airtel were among the major contributors to the positive momentum.

Adani Group rebounds amid allegations

Adani Group stocks staged a sharp recovery after a difficult start to the day. Ambuja Cements was the top performer, rising 6 per cent, while ACC gained nearly 4 per cent. Flagship stock Adani Enterprises advanced 2.5%, and other group companies, including Adani Green Energy, Adani Ports, and Adani Power, also saw modest gains of 1-2%. However, Adani Energy Solutions faced continued pressure, dropping 3 per cent.

The rebound came after the group issued a statement denying bribery and fraud allegations against chairman Gautam Adani and other senior executives. These allegations, raised by the US Securities and Exchange Commission, have been labelled as "baseless" by the group.

Broader market context

Despite the recovery, Adani Group stocks remain under scrutiny. On Thursday, several stocks, including Adani Enterprises, hit 52-week lows, with Adani Green Energy and Adani Energy Solutions falling sharply. Additionally, the Kenyan government terminated a $736 million deal with an Adani unit, further amplifying investor concerns over governance and funding risks.

The group’s struggles have led rating agencies like S&P and Moody’s to downgrade their outlook on some Adani companies, signalling increased risks in the wake of these developments.