A wave of fresh optimism and positive business developments have lifted all Adani Group stocks on Wednesday with gains in the range of 2.18 per cent and 14.7 per cent.
The group’s city gas distribution player Adani Total Gas (ATGL) ended in green for the first time since the Hindenburg Research Report was released on January 25. ATGL snapped its 25-day losing streak and ended at ₹711.65, up 4.88 per cent from its previous close on the NSE.
Adani Enterprises gained the most at 14.7 per cent to ₹1,564.30 with volumes of over two crore shares. Among other group companies, NDTV, Adani Wilmar, Adani Green Energy and Adani Transmission hit upper circuit with gains of 5 per cent.
On the business front, the group announced winning of contract for Kutrumali bauxite block in Odisha, while in Haryana, the group’s power arm Adani Power revised downward the contracted electricity supply under the supplementary power purchase agreement. This makes it favourable for the company to charge additional power supply based on the fluctuating rates of imported coal. APL was locked in 5 per cent upper circuit at ₹153.6.
APSEZ made modest 1.63 per cent gains to end at ₹602.1, while cement arms Ambuja Cement and ACC gained 3.36 per cent and 2.18 per cent, respectively, to end at ₹353.6 and ₹1,769.45.
What lifted investor mood
Reports of group securing $3 billion from a Sovereign Wealth Fund during its investor roadshows in the South-East Asian region lifted the investors’ mood. This is likely to pacify the concerns about Adani’s credit profile after the short-seller allegations including of fraud. However, the exchanges sought clarification from the company on fund raising.
Investors also seemed to have derived some solace after noted valuation expert Aswath Damodaran ruled out the ‘con game’ allegations against the group, though it could be a bad business practice of over-levering.
Another news that fuelled the positive sentiment was the S&P Global Ratings’ stable outlook about the group subsidiary Adani International Container Terminal Pte Ltd with a ‘BBB-’ rating.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.