Adani group shares rise up to 18% for second straight session led by Adani Total Gas. More steam left?
- Stock Market Today: Adani Group shares gained up to 18% for the second day in a row after Adani Green refused bribery charges against Gautam Adani and other company officials. Adani Total Gas and Adani Energy Solutions lead the gains.
Stock Market Today: After rallying up to 18% in intra-day trade on Thursday, November 28, Adani group shares ended on a mixed note amid profit booking following a sharp two-day rally and weakness in the broader market indices.
Adani Group gained in early trade today after Adani Green Energy issued a clarification on Tuesday, refuting bribery charges against Gautam Adani and other company officials.
Adani Total Gas share price was the top gainer in morning session, skyrocketing up to 18%. Adani Green Energy and Adani Energy Solutions share prices rose nearly 10% each, and Adani Power share price followed closely with up to 9% gain.
Adani Enterprises, Adani Ports and Special and Special Economic Zone, and Adani Wilmar also gained up to 5%. Among other group companies, Ambuja Cements, ACC and New Delhi Televisions rose up to 2%.
However, at close six out of the 11 Adani group shares ended in the red.
Adani Total Gas ended the day 15% higher while Adani Energy Solutions and Adani Green Energy remained locked in the 10% upper circuit. Other Adani group stocks gave up part of their intraday gains as benchmark indices ended 1.5% lower.
Adani Power and Adani Enterprises were among the other gainers, rising 6% and 2%, respectively.
On the other hand, ACC, Adani Ports, Adani Wilmar, Ambuja Cement, NDTV and Sanghi Industries closed 0.3% to 2.5% lower.
Adani group shares witnessed a sharp rebound after Adani Green Energy issued clarifications yesterday, stating that “Gautam Adani, Sagar Adani and Vineet Jain have not been charged with any violation of the FCPA (United States Foreign Corrupt Practices Act) in the counts set forth in the indictment of the US DOJ (United States Department of Justice) or civil complaint of the US SEC (U.S. Securities and Exchange Commission)"
Further, the company added that these directors have been charged on three counts in the criminal indictment namely (i) alleged securities fraud conspiracy, (ii) alleged wire fraud conspiracy, and (iii) alleged securities fraud.
Adani Group shares had gained up to 16% on Wednesday.
Apart from this, International Holding Co's (IHC) outlook on the group also boosted the sentiment. IHC's outlook on investments in India's Adani Group remains unchanged, the Abu Dhabi conglomerate, according to a Reuters report.
"Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors. As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged," it said.
Ratings Action on Adani Group Companies
Following the action by US authorities, Fitch Ratings placed Long-Term Foreign-Currency Issuer Default Rating and US dollar senior unsecured bonds of Adani Green Energy on Rating Watch Negative but reaffirmed the rating at "BBB-".
ICRA Limited has reaffirmed the credit rating of long-term fund-based/non-fund-based limits and non-convertible debentures of the company as [ICRA] AAA; Stable, and the commercial paper of the company as [ICRA] A1+.
India Ratings & Research has reaffirmed the credit rating of non-convertible debentures and bank loans (long term) of the company as IND AAA/Stable, and the commercial paper and bank loans (short term) of the company as IND A1.
In its release, Adani Ports also stated that Moody’s Ratings has revised its outlook to negative, though it reaffirmed its investment grade rating of ‘Baa3’.
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