($1 = 81.5930 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)
+919769003463)) (Adds opening levels)
BENGALURU, Jan 31 (Reuters) - Indian shares declined
after a volatile opening on Tuesday, the final day of Adani
Enterprises' mega secondary share sale and ahead of the
country's annual pre-budget economic survey.
The Nifty 50 index was down 0.45% at 17,569.40 as of
9:48 a.m. IST, while the S&P BSE Sensex fell 0.46% to
59,229.62.
The benchmarks swung between gains of 0.5% and losses of
0.5% in early trade before moving lower, once again dragged down
by the heavyweight financials . The index fell 0.4%,
continuing its drop in the wake of the short-seller report on
Adani Group stocks.
While most of the Adani Group stocks resumed their slide,
once again the flagship Adani Enterprises rose 1.73%
on the last day of its crucial $2.5 billion follow-on share
offering.
The group's seven listed companies have lost $65 billion in
market value since U.S-based Hindenburg Research flagged
concerns about the groups' debt levels and the use of tax
havens, charges the conglomerate has denied.
India's annual pre-budget economic survey is due later in
the day, in which the government is likely to peg GDP growth at
6-6.8% for 2023-24, the slowest in three years, Reuters
reported. That will put added focus on the government's fiscal
consolidation path and borrowing calendar for fiscal 2024 at the
Union budget on Feb. 1.
Traders will also watch the budget for any incentives to
entice foreign investors, who have piled out of the market,
especially since the report on Adani Group on Wednesday.
Foreign institutional investors have sold 151.65 billion
rupees ($1.86 billion) worth of shares on a net basis in the
past three sessions.
Later that day, the focus will shift to the U.S. Federal
Reserve's decision on future monetary policy, which is key for
Indian firms, especially IT companies, that have major exposure
to the United States.
Among individual stocks, Bharat Petroleum jumped
over 4% and was the top Nifty 50 gainer after reporting
third-quarter results.
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