Home / Markets / Stock Markets /  Why are Adani stocks surging today?

After falling relentlessly since January 25, Adani group stocks took a breather in last 2 days after the company took multiple measures to soothe investors nerves. Meanwhile, the opposition parties have attacked the PM Narendra Modi-led government of favouring Gautam Adani and the business. The flagship company stock, Adani Enterprises hit an intraday low of 1,017.10 on February 03, 2023, and since then the stock has risen to around 2,000-level, as on February 8.

On Wednesday, 7 out of 10 Adani stocks were in the green with Adani Enterprises rising about 19% in a single day to 2,142.6, Adani Ports up about 8% to 598 and Adani Power, Adani Transmission, Adani Wilmar up about 5% each. Ambuja Cements and NDTV were also trading higher by about 1% and 5%, respectively.

Adani Green, Adani Total Gas were the two stocks that were in the red, with the former falling about 5% to 802 and latter down about 5% to 1,394.15.

On February 7, the combined market value of group firms rose by 11,506 crore, after eight straight days of decline that saw the group lose more than $100 billion in market value.

A few factors that have been fueling the up move in the stocks include prepayment of loans worth $1.1 billion against shares of Adani Ports, Adani Green Energy and Adani Transmission, decent earnings from group companies in last 2 days.

On February 7, Adani Ports said it is planning to repay 5,000 crore of its debt by fiscal 2023-25. "We are considering total loan repayment and prepayment of around 5,000 crore, which will significantly improve our net debt-to-Ebitda ratio and bring it closer to 2.5x by March 2024," said Karan Adani in the video message.

Catch latest updates on Adani story here

Total Energies SE, which has stake in some Adani group companies such as Adani Total Gas and Adani Green Energy, said its $3.1 billion investment in the gas and renewables units of Indian conglomerate Adani Group are healthy, but a hydrogen partnership is on hold for the moment, Bloomberg reported.

Meanwhile, Adani Green on Tuesday reported a net loss of 127 crore for the quarter ended December 2022. This is against a net loss of 79 crore in the corresponding quarter last fiscal.

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