Adani group company stocks rallied on Tuesday, adding ₹19,994 crore in market capitalisation.- Five out of the nine
Adani group company stocks closed in the green on Tuesday, led byAdani Enterprises – which gained over 14%. - Overall, the Adani Group’s market cap is still down by ₹10.68 lakh crore since the Hindenburg report was released on January 24.
In early trades on Tuesday, five out of the nine Adani group stocks were locked in their respective lower circuits. Despite an attempt by bulls to take charge later in the day, three stocks still closed at their respective lower circuits on Tuesday. However, the flagship Adani Enterprises clocked major gains to close over 14% in the green during the day.
Source: NSE, as at 3:30 p.m., February 7, 2023
On Monday, the nine Adani group companies saw a decline of ₹31,534 crore in their cumulative market capitalisation, with Adani Transmission accounting for more than half of the fall at ₹17,303 crore.
Overall, the Adani group’s overall market cap is down by ₹10.68 lakh crore since the Hindenburg report was released on January 24.
A Business Insider India analysis found that the Adani group’s gains of 2022 have been completely wiped out since January 24.
Adani stocks’ steep fall on the bourses has also led to finance minister Nirmala Sitharaman issuing a statement to calm nervous investors, saying that insurance and banking companies are “not overexposed” to the group.
"Yes, there have been occasional blips in the market, maybe small or big, but they do address issues like that. And I strongly believe that our regulators are seized of this matter,” Sitharaman said in an interview.
Markets regulator Securities and Exchange Board of India (SEBI), too, stepped in and said it has measures in place to address excess volatility in the stock market. This includes Additional Surveillance Mechanism (ASM).
“This mechanism gets automatically triggered under certain conditions of price volatility in any stock,” SEBI said on Saturday.
Stock exchanges BSE and NSE have put three Adani group companies — Adani Enterprises, Adani Ports & SEZ, and Ambuja Cements — under their short-term ASM. It means that intra-day trading would require a 100% upfront margin and is aimed at curbing speculation and short-selling in these stocks.
After calling off its ₹20,000 crore follow-on public offer, Adani Enterprises has reportedly pulled off its planned ₹1,000 crore bonds issue.
Multiple projects of the Adani group have also come under the scanner in the aftermath of the Hindenburg fallout.
According to reports, the group’s ₹23,000 crore Dharavi Redevelopment project, the ₹16,700 crore Navi Mumbai International Airport project, and the Navi Mumbai power distribution license are all under the scanner.
SEE ALSO:
Adani Transmission reports 78% rise in Q3 net profit to ₹475 crore on one-time income
Vodafone Idea shares hit 25% upper circuit after govt agrees to convert ₹16,133 cr dues into equity
Adani group stocks continue to plummet – lose ₹31,534 crore in market capitalisation on Monday