‘Elevated Valuations of Adani Stocks - Serious Concern’: Decoding Current Market

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‘Elevated Valuations of Adani Stocks - Serious Concern’: Decoding Current Market
Credit: © Reuters.

By Malvika Gurung

Investing.com -- In a note provided to Investing.com, Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, stated that there is a churn going on in the market currently in favour of autos, thanks to good results from Tata Motors (NS: TAMO ) and Bajaj Auto (NS: BAJA ).

On the Hindenburg report, Vijayakumar said that elevated valuations of Adani stocks are a ‘serious concern’. Besides, data from the US indicate a resilient economy, he noted.

Read Also: Adani Stocks Fry-Day: Adani Stocks Hit Upto 20% Lower Circuits on Hindenburg Claims

“With 2022 Q4 GDP growth at a better-than-expected 2.9% and jobless claims falling, the hope for a soft landing for the US economy is increasing. Interestingly, this good economic news is now becoming good news for the market unlike earlier when bad economic news turned out to be good news for markets,” the expert added.

Following the release of a study report by Hindenburg Research on Adani Group, the Indian equities markets are under intense selling pressure as the stock market chaos continues in the Adani Group, stated Santosh Meena of Swastika Investmart (BO: SWAF ).

The domestic market is witnessing a deep sell-off in Friday’s intraday trade, led by a second consecutive-day rout of all the 10 listed Adani Group stocks following the Hindenburg report, along with a crash witnessed in banking and financial stocks.

Benchmarks Nifty50 and Sensex tanked on Friday, with the former cracking under the 17,600 mark and hitting a four-month low in the session, while the 30-scrip Sensex crashed over 1,157.88 points while writing.

The market fear gauge India VIX soared 20.45% to 17.65 levels.

Read Also: Dalal Street Carnage! Nifty Hits 4-Month Low, Investor Wealth Erodes, PSU Banks Crash

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  • Chandresh Dedhia @Chandresh Dedhia
    This episode can bring a correction in high PE companies over all as now on all high value stocks will be thought twice before buying.
    Like 0
  • Tamal Chakraborty @Tamal Chakraborty
    Report supply by INDIAN COMPANY. COMPETITOR. PROBABLY he will not eligible for 5g connection nearby.maggy.coca cola. Dove soap. All company victimed by USA. Media.
    Like 0
  • Tom Singh @Tom Singh
    good days don't last long so as bad days .patience is key
    Like 2
    • Sridhar N Rao @Sridhar N Rao
      Only challenge is to time the “buy” by the end of bad days and time the “sell” by the end of good days 😀!
      Like 0

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