Why are Adani stocks surging today?
1 min read . Updated: 08 Feb 2023, 02:50 PM IST
Premium- 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
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.
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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.
