Companies
Adani stocks jump on SC panel report findings
Summary
- Six out of 10 Adani Group stocks hit their upper circuits, with the group market value in dollar terms rising by $9.7 billion to $122.9 billion from the previous session, the most since 30 August last year when it rose by $10.2 bn to $271.7 billion.
MUMBAI : Adani group stocks surged on Monday, led by flagship Adani Enterprises (AEL), with investor wealth rising by the most in almost nine months after a Supreme Court-appointed panel found no prima facie evidence of stock price manipulation as alleged by US short-seller Hindenburg Research.
Six out of 10 Adani Group stocks hit their upper circuits, with the group market value in dollar terms rising by $9.7 billion to $122.9 billion from the previous session, the most since 30 August last year when it rose by $10.2 bn to $271.7 billion. However, despite Monday’s rise, the overall market cap at ₹10.16 trillion still languishes ₹9 trillion below that on 24 January when the Hindenburg Research report surfaced.
The largest contributor to the market value increase was Adani Enterprises, which advanced 18.92% to ₹2,316. This alone contributed to a little over half of the market cap increase of ₹81,998 crore. The second-biggest contributor was Adani Ports which gained 6.05% to ₹729.7 a share.
Other group stocks such as Adani Power, Adani Wilmar, Adani Total Gas, Adani Transmission and Adani Green remained locked at their upper circuits at close.
“The reason for the gain in group stocks was the market perception that the SC-appointed panel’s near clean chit to the conglomerate," said independent market consultant Ambareesh Baliga.
Baliga expects the stocks to continue the “momentum" but not reach the pre-Hindenburg highs. Derivatives data clearly shows heavy buying interest in heavyweight Adani Ports and short covering in Adani Enterprises.According to Equirus quant analyst Kruti Shah, Adani Ports, Ambuja Cements, ACC and Adani Power could witness a 25-30% rally from their current levels.
Aside from the heavyweights, stocks like Adani Green, Adani Transmission, Adani Power and Adani Total Gas saw fresh buying with delivery to the traded quantity of between 70% and 80%.
