Tale of two halves! Why Sensex ended higher but Nifty in red

In percentage terms, Nifty was lower by 0.26% while Sensex was 0.27% higher.

Both key indices are often interchangeably used by investors to understand the market mood as both move in the same breadth almost always.

Had it not been for

and , both of which are part of Nifty and not Sensex, weighing down the 50-share barometer, the index too would have ended on a positive note.

Adani Enterprises, which ended 26.7% lower on NSE, contributed 49 points to the index’s downfall. On the other hand, Adani Ports which ended 17.7% lower contributed another 18.6 points.

The second-biggest drag on Nifty was SBI, whose investors were apparently worried about the public sector bank’s exposure to the Adani Group.

was also the top drag on Sensex.

“While the initial reactions to the Budget were positive, the continuation of the downfall in the Adani Group stocks led to nervousness amongst market participants, leading to unwinding of positions,” said Ruchit Jain, Lead Research, 5paisa.com., and were among the top gainers on both indices.

Among major sectoral indices, Nifty PSU Bank and Nifty Metal were the worst performers during the day. Adani Enterprises, which is down around 49% from its 52-week high, is also included in the metal index.

While Adani stocks are having a tough time on Dalal Street ever since the Hindenburg report came out last Wednesday, trouble increased after Credit Suisse assigned a zero lending value for bonds sold by Adani Ports and Special Economic Zone,

and Adani Electricity Mumbai.

The global investment bank has stopped accepting bonds of Adani companies as collateral for margin loans to its private banking clients following allegations made in the Hindenburg report.

All the 10 Adani Group stocks ended in the red on Wednesday with four of them ending in lower circuits.

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