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Stock markets made a strong comeback on Friday, led by gains in IT, financial, and energy stocks, following their steepest drop in nearly two months on Thursday.
By 10:33 am, the S&P BSE Sensex had jumped 663 points to 79,702.09, while the NSE Nifty50 rose 154.60 points to 24,084.95. Adani Group stocks led the rally, with Adani Green Energy and Adani Energy Solutions surging nearly 13% each. Cipla, Sun Pharma, M&M, Adani Ports, and Bharti Airtel topped the Nifty50 gainers, while Shriram Finance, SBI Life, Power Grid, Coal India, and Hero MotoCorp lagged behind.
The rally precedes India’s GDP data release, which economists forecast at 6.5% growth for July-September, the slowest in 18 months. Dr. V K Vijayakumar of Geojit Financial Services advised caution, citing unpredictable foreign institutional investor activity after Thursday’s significant sell-off of ₹11,756 crore.
Fundraising through the qualified institutional placement (QIP) route reached a record Rs 1 trillion in 2024, marking the highest amount ever raised. So far, 80 companies have collectively secured Rs 1.13 trillion, triple the Rs 38,220 crore raised by 35 firms during the same period in 2023. The previous record was set in 2020 when 25 companies raised Rs 80,816 crore.
If ongoing QIPs from Godrej Properties and KEI Industries, totaling Rs 8,000 crore, are completed successfully, the 2024 total will climb to Rs 1.21 trillion. Companies are primarily using the funds for debt repayment, balance sheet improvement, and growth opportunities, alongside capital expenditures and corporate purposes.
Among the largest QIPs is Zomato’s Rs 8,500 crore issue, aimed at funding dark store operations, warehouses, marketing, branding, and technological upgrades, including cloud infrastructure and software development.
Adani Green Energy Ltd (AGEL) has not yet supplied power to Andhra Pradesh from its solar project, which is linked to a U.S. indictment alleging bribery involving Gautam Adani. The project, initially expected to deliver 3,000 MW by September 2024, has seen delays, with Andhra Pradesh now slated to receive 1,000 MW by April 2025 and another 1,000 MW by January 2026—far below the promised 6,000 MW by September 2025.
Despite the delays, AGEL has sold power from the project on power exchanges at Rs 3.5 per unit, higher than the Rs 2.42 per unit agreed in its power purchase agreement (PPA). AGEL attributes the delays to incomplete transmission infrastructure by the Central Transmission Utility of India Ltd. The company insists it will meet its PPA obligations once transmission systems are operational.
The issue has gained attention amidst U.S. bribery allegations, with Andhra Pradesh Chief Minister N. Chandrababu Naidu vowing action against irregularities.
Global investors believe that while bribery allegations against the Adani Group may dampen short-term sentiment, they are unlikely to impact India's long-term market prospects. Allegations from the U.S., which the Adani Group denies, claim the conglomerate paid bribes to secure power sales and provided misleading disclosures. This has led to volatility in Adani’s stocks and debts, wiping out $14 billion in value across its companies.
Investors expect heightened scrutiny on governance and transparency but remain focused on India’s economic growth and large consumer market. Steve Lawrence of Balfour Capital notes that the Nifty 50 index has risen 3% since the news, reflecting market confidence.
Foreign investors, holding less than 20% of India’s $5.5 trillion equity market, remain optimistic. Mike Sell of Alquity calls it a “stock-specific event” without broader negative impact, as clients continue to increase their India allocations. Flows into Indian equities have also stabilized recently.
