Shares of most of the Adani group companies closed lower on Monday, with shares of the combined group companies seeing a sharp drop of Rs 9.5 crore after the negative report of Hindenburg Research in the US.
Forex traders said the Hindenburg Research report soured the market sentiment towards shares of Adani Group, which led to a sharp drop in share prices.
At the end of Monday’s trading session, six of the Adani Group’s ten companies finished in the negative zone, with Adani Transmission shares declining by 10 percent, while Adani Total Gas, Adani Power, Adani Green Energy and Adani Wilmar shares fell by 5 percent. . all.
Shares of Adani Enterprises closed the day at Rs 1,572.40, down 0.74 percent from its previous close.
Four Adani group companies defied the trend and settled in positive territory with Adani Ports and Special Economic Zone closing up by 9.46 per cent, Ambuja Cement (up by 1.54 per cent), ACC (up by 2.24 per cent) and NDTV (up by 1.37) percent).
“The shares of Adani Group (including Ambuja, ACC and NDTV) have lost around Rs 9.5 crore or around 49 per cent of their combined market value in the last nine trading sessions (24th January to 6th February 2023),” said Manish Chaudhary, division chief. Research at Stoxbox.
Shares of the Adani Group have faced selling over the past few sessions following the Hindenburg short report. The cancellation of the Adani Enterprises FPO has also added to the volatility.
“The news of the promoter taking steps to cancel its shareholding pledge in some companies appears to have stabilized sentiment in some companies,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
The Adani Group said on Monday that the promoters will prepay US$1,114 million to release the pledged shares of its companies before the maturity date of September 2024.
A statement said that these shares are owned by Adani Ports and Special Economic Zones Company, Adani Green Energy Company and Adani Transmission Company.
“This is a continuation of the promoters’ assurance of pre-payment of all equity-backed financing,” it said.
Meanwhile, stock indices, Sensex and Nifty, closed in the red on Monday.
The 30-share index settled down 334.98 points, or 0.55 percent, at 60,506.90. During the session, the index touched the lowest level of the day at 60345.61.
The broader NSE Nifty index fell by 89.45 points, or 0.50 percent, to close at 17,764.60, with 34 of its shares declining.
Meanwhile, the markets regulator, Sebi, said on Saturday that it is committed to ensuring the integrity of the stock market, and all necessary monitoring measures have been put in place to address any excessive volatility in individual stocks.
The Reserve Bank said on Friday that the Indian banking sector is resilient and stable, and the central bank is keeping a constant vigil on lenders.
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