After January Surge, Stocks Take a Pause as Adani Plunges in India
After a surge in January, global stocks took a breather on Friday. The U.S dollar held close to an eight-month low as encouraging economic and inflation data from the United States continued to buoy investor sentiment ahead of next week’s central bank meetings.
The MSCI world equity index, which tracks shares across 49 countries, edged up 0.1 percent and was set for its third consecutive weekly gain after hitting a 5-1/2 month high earlier this week. Major European stock markets were slightly higher while Asian indices closed mixed with Japan’s Nikkei ending down 0.3 percent due to profit taking after rising more than 4 percent since the start of February .
In India however, Adani Group stocks tumbled by nearly 10% following reports that it had defaulted on loan payments worth Rs 1125 crore ($160 million). This news sent shockwaves through Indian markets as investors reacted negatively towards the company’s financial position despite strong earnings reported last quarter by many other companies listed in India’s benchmark Nifty 50 index which ended flat at 14584 points .Read more at Reuters