Adani Ports shares fall over 5% as Israel-Iran conflict continues

Adani Ports and Economic Zone shares slipped 5.4% to an intra-day low of Rs 1,337 as Hamas fired rockets in South Israel. The stock was the major loser in the Nifty 50 on October 07. The company operates Haifa Port which is located in the South of Israel. 

The Israeli military reported that rockets fired from northern Gaza entered southern Israel on October 06, a day before the first anniversary of Hamas’s October 7 attack.

“Several projectiles were identified crossing from the northern Gaza Strip into Israeli territory. One projectile was intercepted, while the others landed in open areas,” said the Israeli military, reported AFP.

Status last October

A year back when the conflict between Hamas and Israel erupted Adani issued a statement. “We are closely monitoring the action on the ground which is concentrated in South Israel, whereas Haifa port is situated in the North. We have taken measures to ensure the safety of our employees and all of them are safe. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality.” 

Adani Ports’ stocks are again falling after Hamas fired rockets over Israel on October 06. In this Israel suffered some humanitarian loss. 

Adani Group Acquired Haifa in 2023

Adani Ports fully acquired the Haifa port in February 2023. Israel’s envoy to India said that the Adani Group had paid in full to acquire Haifa port. 

“We have two ports in the Mediterranean. It’s (Haifa) a strategic asset. The fact that we are giving it to an Indian company, from our point of view, is a symbolic sign of deep trust in depositing your strategic assets in the hands of Indian companies,” Ambassador Naor Gilon said.

Adani Ports Vs Nifty 50

The stock of Adani Ports has fallen 6% in the past five trading sessions and 5.5% in the last one month. The stock of the company has given a 30% return from year to date. The stock has risen almost 72% in the past one year and 232% in the last five years.

To compare, the benchmark index Nifty 50 has fallen 5% in the past five days and erased investors’ 0.6% wealth in the last one month. However, the index has risen 14% from year-to-date. The index has given a return of 27% in the past year.