By Siddhant Mishra
On Monday, Adani stocks were being keenly watched by market observers. And while the stock of Adani Enterprises, which is in the midst of a follow-on offer, partially recovered to close with a gain of 3.06% on the NSE, others like Adani Green Energy and Adani Total Gas continued their downward trajectory by falling 20% each.
The volume of Adani Enterprises shares hit 22.7 million on Monday – the highest since June 2021.
Other group company stocks such as Adani Wilmar, Adani Power, Adani Transmission, Adani Ports and Special Economic Zone closed down between 0.3% and 15%. Ambuja and ACC were up 1.7% and 1.1%, respectively.
The overall market cap of Adani Group firms was Rs 19.23 trillion as on January 23. On Monday, the same stood at Rs 13.63 trillion, indicating a massive 41% plunge.
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Among the group firms, Adani Transmission and Adani Green have lost as much as 62% in market capitalisation over the past week.
According to a research analyst with a brokerage, who did not wish to be quoted, the major damage caused by the report by Hindenburg Research seems to be behind us. While the group has denied the allegations mentioned in the report, it has had a minimal impact in controlling the damage.
However, the announcement of a $400-million investment in the FPO by Abu Dhabi’s IHC has somewhat allayed the concerns, he pointed out, which has led to a stop in the panic.
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“With the focus now shifting to the Budget, the shares may stop falling, or fall at a lower pace. Most of the stocks that fell 15-20% are likely to bounce back, though stocks like Adani Green and Adani Transmission, which have nosedived, could see some pressure for the time being. In addition, there might be further selling pressure owing to margin calls, etc, but the major panic seems to have ended on Monday, and Tuesday onwards, we could see a recovery,” said the analyst.
According to NSE data, the Adani Enterprises futures slated for expiry on February 23 were trading at Rs 2,887.50, March 29 at Rs 2,862 and April 27 at Rs 2,861.