The selloff deepened after Bloomberg reported this week that units of Credit Suisse Group AG and Citigroup Inc. have stopped accepting some securities issued by Adani’s companies as collateral for margin loans to wealthy clients.

Rajasthan govt has amended its combined excise policy for FY23 & FY24. The state has hiked prices for Indian made liquor and Rajasthan made liquor. How will it impact alcohol stocks? ET Now's Ashesha decodes

September quarter was a mixed bag for the Indian equity markets, wherein high energy prices, depreciating rupee and recession fears dented the growth outlook while select sectors including defence, speciality chemicals, manufacturing and consumption were in high spirits.Dalal Street will now be entering the December quarter, which would be guided by the festive season, September quarter earnings and the mood of global investors. Also, India Inc would prepare for the much-awaited Budget session. Here are some select picks that you can look to buy in the October-December period for strong returns:

As NIFTY stays in volatile mode and besides the Adani group stocks, financial stocks also come under pressure, the fear that small caps may also come under sharp pressure is back on the street. However, small cap companies which operate in niche products and services or have brands with strong market share tend to get the attention of the market even when overall small cap is under pressure. ET screener powered by Refinitiv’s Stock Report Plus lists down stocks with high upside potential over the next 12 months, having an average recommendation rating of “Buy” or "Strong Buy".

The meltdown in share prices marks a dramatic turn of fortune for Adani, who in recent years forged partnerships with, and attracted investment from, foreign giants as he pursues global expansion in sectors as varied as ports and power.

Importance of having high-dividend-yielding stocks in one’s portfolio is realized by the majority at the time of correction. One which is being witnessed in markets. For the purpose of this report, we had kept the dividend yield of at least 7 percent as a benchmark. Another condition was that the company should have a track record of paying dividends in the last four of the five years.

BofA Securities maintained a buy rating on Power Grid with a target price of Rs 244. According to the investment bank, there could be some pressure on RoE amid rising competition.A strong dividend payout is a good sign. However, earnings were down on higher interest expenses

While inflation has cooled off from the peak, concerns surrounding it are far from over for both India and developed economies like the US, where the Federal Reserve has indicated rate hikes continuing through 2023.

The Hindenburg report warned investors of heavy leverage and fraudulent practices in Adani Group companies. The conglomerate responded with a strong rebuttal, but it failed to comfort investors.

Brokerage firm Kotak Institutional Equities has selected long-term compounders and a few value stocks from its recommended midcap portfolio, which have the strength to deliver good returns. The brokerage firm believes that stocks like Cummins, Federal Bank and Shriram Finance will provide good opportunities to investors. Here is a list of 7 midcap stock ideas from Kotak's model portfolio that can rally up to 46%:

During the day, Adani Enterprises was the top loser in Adani's group of stocks as the Nifty50 stock was locked in 20% lower circuit at Rs 1251.80. The stock is down over 70% from its 52-week high. The company's Rs 20,000 crore FPO, which was withdrawn earlier in the week, was priced at Rs 3,112-Rs 3,276.

The markets remain influenced by the options expiry on Thursday, while taking in its stride two main events of the Union Budget and the US Fed rate hike. The Nifty ended the day with a minor loss. Some IT stocks are showing good technical possibility of moving up.

While inflation has cooled off from the peak, concerns surrounding it are far from over for both India and developed economies like the US, where the Federal Reserve has indicated rate hikes continuing through 2023.

"The most significant trend in the market so far in 2023 is the big underperformance of India compared to other markets. The Adani crisis impact is slowly diminishing. The ferocious rally of 3.5% in Nasdaq yesterday is an indication that the market expects a soft landing of the U.S. economy. IT stocks look strong. High-quality private sector banking stocks and capital goods stocks also are on a strong wicket," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

“Options data suggests a broader trading range in between 17200 to 18200 zones while an immediate trading range in between 17350 to 17900 zones due to higher volatility,” Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.

Its price has been sliding after failing to cross its peak in August. For the past two months the price was gradually moving inside a parallel falling channel. The latest candle has given a breakout of the channel’s upper trendline. The candle formed is a Marabozu which shows that buying interest stayed intact till the close of the session.

Opening Bell: Sensex jumps over 400 pts, Nifty above 17,700; Titan rallies 5%, Adani Transmission tumbles 10%

Adani stocks have been in a freefall and so have eroded over 40% of investor wealth ever since American short-seller made multiple allegations in its report last week. With a view to safeguard investors from the sharp volatility in stocks of Adani Group companies, the National Stock Exchange has moved Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements under the short-term additional surveillance measure (ASM) framework.

Three Adani stocks under ASM, what does it mean? ET NOW's Managing Editor Nikunj Dalmia decodes. Listen in-

But if overall a typical household is consuming about the same as last year and paying just 2% more for it, that's thought to be low enough that they will not have to worry much about it in their day-to-day planning, but high enough to give central bankers wiggle room to fight economic downturns with interest-rate cuts.

Overnight, markets sensed the end of the massive global tightening cycle, after policymakers in Britain and Europe signalled their intention to pause, sending local bonds rallying and currencies lower.

Stocks that were in focus include names like ITC which was up nearly 5%, KPIT Technologies which gained nearly 6%, and Jindal Saw which closed with gains of over 7% to hit a fresh 52-week high on Thursday.

ET Now spoke to various experts and here's what they have to recommend for today's trading session. Nooresh Merani has a buy/sell recommendation on Indigo and Ashok Leyland while Kunal Bothra has a buy/sell recommendation on Voltas and L&T Tech for today's trading session. Check out the targets and stoploss.

Reuters calculations show that interest payments of a total of around $24 million were due on Feb. 2 on three bonds issued by Adani Ports and Special Economic Zone due to mature in 2031, 2032 and 2041.

The Adani Group has shed $108 billion in market value since Hindenburg Research accused it of stock manipulation and accounting fraud in a Jan. 24 report. But it was only when the tycoon scrapped a $2.4 billion share sale this week that the potential for lasting impact became clear. Adani’s rebuttal had failed to reassure investors. Once ranked No. 2 among the world’s wealthiest, he has tumbled to No. 21 on the Bloomberg Billionaires Index.

Exchanges is in the process of putting together the trading activity that has happened in Adani companies over the last few days. They will submit their findings to the regulator. "Any unusual trading will be examined by the stock exchanges," said the person quoted above.

The move would see lenders release some of the stock in Adani Group companies that was pledged as collateral, according to the person. The Indian group hasn’t faced margin calls on these pledges and is seeking the prepayment proactively, the person said, asking not to be identified as the details are private.

Investors were still digesting the Fed's policy decision on Wednesday and comments from Powell, who acknowledged progress in the fight against inflation and appeared reluctant to push back against the rally in stocks and bonds.

The February futures contract of Nifty 50 traded on the Singapore Exchange indicates a positive start to domestic equities. The contract was trading at 17,710, up 71 points or 0.40% from the previous close.

Investors were still digesting the Fed's policy decision on Wednesday and comments from Powell, who acknowledged progress in the fight against inflation and appeared reluctant to push back against the rally in stocks and bonds.

Promoter holding in the bank is 16.51% - IndusInd International Holdings had 12.58% and IndusInd Ltd had 3.92% on December 31, 2022, according to a stock exchange disclosure. "To increase stake in the bank, Hinduja Group may need to infuse ₹10,000-11,000 crore ($1.2-1.3 billion). They may infuse the money by issuing preferential shares," said the person cited above.

He said it is for regulators, markets and the company to address the issue. "The government does not concern itself with the fortunes of individual private sector companies," Somanathan told ET during a post-budget interaction. "We are confident that the public financial institutions are in a very strong position and their exposures to any one private company is not of a magnitude that would create any unease or difficulty for the public financial institutions."

The shares have been on a freefall after an attack last week by short-seller Hindenburg, accusing the group of stock price manipulation. On Wednesday, a day after the successful closure of the FPO, AEL shares lost 28.2% in market value after reports emerged that global banking major Credit Suisse had stopped accepting Adani Group bonds as collateral. The company announced the decision to withdraw the FPO on Wednesday night.

By targeting a fiscal deficit of 5.9% of GDP for FY24 (vs 6.4% for FY23RE), budget has stayed on the committed glide path to below 4.5% by FY26. A lower deficit will also have a salutary effect on government's borrowing costs and is in sync with the RBI's actions to tame inflation.

Under RBI guidelines, NBFC-ULs have to implement a board-approved policy for adopting the enhanced regulatory framework applicable to them and mandatorily list within three years of this. Tata Sons chairman N Chandrasekaran met RBI officials in this regard last week, said the people cited above.

Even the seven priorities that have been articulated to guide India through its Amrit Kaal are in sync with the past thrust from this government on areas such as infrastructure, development, financial sector, unleashing the potential of the youth, green growth, and inclusive development that reaches the last mile.

On Thursday, Adani Ports fell 6.1%, Adani Power and Adani Wilmar declined 5% each, Adani Transmission, Adani Green Energy and Adani Total Gas dropped 10% each. ACC ended almost unchanged over the previous day and Ambuja Cements jumped 5.3% after the Adani Group clarified that no shares of either of the companies have been pledged by promoters and they have only provided so-called, non-disposal undertakings.

Since the slide in prices and spiralling yields of different dollar bonds issued by Adani companies in offshore markets would make it difficult for Adani to raise fresh dollar loans and bonds at a reasonable cost from international investors, the support of local lenders is crucial.

The Supertrend indicator also triggered a ‘buy’ on the daily charts on February 2

"Applicable rate of margin shall be 50% or existing margin, whichever is higher, subject to maximum rate of margin capped at 100% w.e.f (with effect from) Feb 6, 2023 on all open positions as on Feb 3, 2023 and new positions created from Feb 6, 2023," the exchange said in a circular on Thursday.

Exchanges is in the process of putting together the trading activity that has happened in Adani companies over the last few days. They will submit their findings to the regulator. "Any unusual trading will be examined by the stock exchanges," said the person quoted above.

Further, market participants looking to pledge Adani shares with brokers as collateral for trading are being asked to take a bigger haircut in the value of the loans. A haircut is the worth ascribed to an asset by a lender for calculating the collateral value. These steps are part of brokers' attempts to reduce risks for clients and for themselves.

"The central bank has asked all lenders to submit exposure data related to the Adani Group," a senior banker in the know said. "Due to the turmoil in the stocks, the RBI wants to assess if this could lead to a potential problem for the banking system. They are also assessing whether any bank is in breach of the group exposure norms."

Currently, the rating agency has assigned ratings to 23 infrastructure and financial sector-linked entities of the Adani Group

There is an encouraging downward path of inflation in our central projection. But there's a big risk. We've got the biggest risk in our forecast on inflation on the upside that we've ever had," he said

But financial markets immediately interpreted the move as suggesting the tightening cycle might in fact end soon

In a volatile trading session, Indian equity indices closed on a mixed note on Thursday. Nifty settled a tad lower at 17,610, while Sensex rose 224 points to end at 59,932. Among sectoral indices, Nifty PSU Bank, Nifty Pharma, Nifty Metal and Nifty Financial Services ended in the red, while all others ended with gains.“Markets remained volatile. Nifty failed to surpass levels of 18,000, while on the flip side it is defending levels of 17,400 on a closing basis. Nifty is likely to remain choppy with immediate support seen between 17,400-17,300 zone. Mixed action among the sectoral indices is expected to continue.“Ideal strategy remains to focus on stocks specific action. FMCG index has outperformed the benchmark index, sustaining to lift the FMCG index towards all-time higher zone. Also stocks specific rally within IT space is possible,” said Amit Trivedi, CMT, Technical Analyst - Institutional Equities, Yes Securities.Here are stock recommendations for Friday:

We would like to clarify that none of the shares of Ambuja or ACC has been pledged by Promoters. The Promoters have only provided a non-disposal undertaking and accordingly, there is no requirement of providing any top-up of shares of Ambuja and ACC or cash top-up under the acquisition financing raised last year

"LTIMindtree has indicated a prominent bullish candle pattern on the daily chart to move past the significant moving averages of 200DMA and 50EMA of 4500 and 4445 levels respectively, to improve the bias and further rise is anticipated in the coming days," Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd, said.

The benchmark index Sensex closed higher by about 224 points to 59,932 on Thursday. During this rally, four stocks from the BSE consumer discretionary index managed to touch new 52-week highs.The 52-week high is the highest price at which a stock has traded during the last year. Some traders and investors use this technical indicator as an important factor for analysing a stock's current value and for predicting its future price movement.