Nifty and Sensex are set for a flat opening amid SEBI charges; investors are advised to stay calm.

Flat Start Anticipated for Nifty and Sensex Amid SEBI Charges; Investors Urged to Maintain Composure

Written by: Supriya Kadu

Edited by: Omkar Devadkar

Last Updated: August 12, 2024

Summary: As of 07:47 am, the GIFT Nifty was trading at 24,362.5, indicating that the Nifty 50 will probably open close to where it closed earlier.

On Monday, benchmark indices are expected to open flat in response to the Securities and Exchange Board of India's (SEBI) appeal for investor composure in the wake of accusations made against the SEBI chief by Hindenburg Research.

The Nifty 50 is likely to open close to its previous close of 24,367.5 on Friday, according to the GIFT Nifty, which was trading at 24,362.5 as of 07:47 am.

Over the weekend, US-based Hindenburg Research accused Madhabi Puri Buch, the head of SEBI, of having previously owned shares in offshore funds that the Adani Group also uses. Buch has denied these claims, saying that all of her interests were appropriately declared.

SEBI issued a statement, advising investors to be calm and cautious before reacting to the information. The Association of Mutual Funds in India (AMFI), a mutual fund industry, attempted to reassure investors by emphasizing the security and openness of India's financial system.

Analysts believe these claims will have little impact on company earnings or the macroeconomic fundamentals of Indian markets, with only a modest, perception-driven effect on market sentiment.

Indian equities posted gains on Friday, reducing their weekly losses. Gains were fueled by a greater-than-expected drop in US jobless claims, which soothed concerns about a possible recession in the largest economy in the world and lifted international markets earlier in the week.

After five consecutive sessions of net sales of Rs 22,857 crore, foreign institutional investors (FIIs) stopped their selling run on Friday, buying a net amount of ₹407 crore in shares.

The MSCI Asia ex-Japan index rose 0.5% on Monday, marking a positive start for Asian markets. Global investors are currently concentrating on the US consumer pricing data, which is scheduled for release on Wednesday and will offer additional information about the state of the US economy. On Friday, Wall Street ended the day higher.

Stocks to watch:

Adani Group: Adani Enterprises and Adani Ports are two businesses that will probably come under scrutiny in the wake of the Hindenburg claims concerning the SEBI chief's alleged dealings in offshore funds that the organization used.

Honasa Consumer: For the June quarter, the company's overall net profit increased.

Amara Raja Energy & Mobility: The company's unit closed an agreement with Piaggio Vehicles, the Piaggio Group of Italy's Indian subsidiary.

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