Adani shares gain, Group’s m-cap crosses Rs 10L crore
Despite the gain clocked on Monday, Adani Group’s m-cap is still down by over Rs 9 lakh crore when compared with the m-cap on January 24.
NEW DELHI: Shares of 10-listed Adani Group companies skyrocketed on Monday and logged one of their biggest gains after the debacle caused by the Hindenburg Research report published on January 24, 2023.
The conglomerate’s flagship firm Adani Enterprises soared highest at 18.84% to close at Rs 2,325.55 while most other stocks hit their upper circuit of 5% and 10%. The 10 Adani stocks added about Rs 80,000 crore to the Group’s market capitalisation which topped Rs 10 lakh crore level after months.
Despite the gain clocked on Monday, Adani Group’s m-cap is still down by over Rs 9 lakh crore when compared with the m-cap on January 24. Adani shares have shredded up to 80% this calendar year. Adani stocks saw a huge erosion after Hindenburg accused the port-to-power conglomerate of stock manipulation and accounting fraud. The report led to about $150 billion in the market value erosion of the Group earlier this year.
The sharp buying in Adani shares on Monday came after the six-member expert panel set up by the Supreme Court on Friday gave a clean chit to the Adani group on charges of stock price manipulation and refused to conclude that there was a regulatory failure by Sebi.
Monday’s rally was also supported by reports which noted that the Indian conglomerate may consider monetising select real estate assets.Shares of Adani Power, Adani Transmission, Adani Green Energy, Adani Total Gas and NDTV jumped 5% each Adani Wilmar surged 10%. Adani Ports, Ambuja Cements and ACC rose up to 6%.
V K Vijayakumar, chief investment strategist, at Geojit Financial Services, “The high integrity of the members of the panel must have given confidence to investors to buy the beaten down stocks. Some short covering also would have contributed to the rally. However, from the valuation perspective, Adani stocks are not undervalued.” Kranthi Bathini of WealthMills Securities said despite today’s bounce, it is recommended only for those investors with a high-risk appetite to venture into the territory due to high volatility. Meanwhile, Indian equity markets extended their gains for the second straight session on Monday, led by gains in technology and metals stocks. BSE Sensex rose 234 points to close at 61,964; while broader NSE Nifty index moved 111 points to settle at 18,314.
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