Most Adani Group stocks bounce in a relief rally

Mumbai: Most Adani Group stocks recovered in a relief rally on Tuesday after three days of sell-off as the full subscription of Adani Enterprises' ₹20,000-crore follow on public offer (FPO) eased anxiety among investors. Seven of the 10 Adani stocks gained between 2% and 4% on Tuesday though analysts remain sceptical whether the rebound will sustain.

Adani Enterprises, the group's flagship company, gained 2.80%, while shares of Adani Transmission, Ambuja Cements, and ACC gained between 3% and 4%. Adani Green Energy and Adani Ports gained 3% and 2.6%, respectively.

Adani Total Gas, Adani Wilmar, and Adani Power were locked in their respective lowest trading prices for the day. Still, Adani Group on Tuesday lost ₹4,000 crore in market capitalisation after shedding ₹5.6 lakh crore since last Tuesday, triggered by Hindenburg Research's report on January 24 that accused the Ahmedabad-based industrial house of engaging in "brazen stock manipulation" and an "accounting fraud scheme."

Adani stocks will remain under pressure in the short-term, said analysts. "My sense is that it will still take some amount of time for investors to gain confidence from a medium-term standpoint in Adani stocks," said Dhananjay Sinha, co-head of institutional equities & research, Systematix Shares and Stocks. "There is certain news concerning how the regulators will look at things and stuff, and till clarity emerges on that, people will kind of remain somewhat cautious in that space."

The US-based short-seller had said Adani's seven key listed companies have a downside of 85% purely on a fundamental basis owing to sky-high valuations. The Adani Group has slammed the report, terming it a "malicious combination of selective misinformation and stale, baseless, and discredited allegations."

The group pledged more shares of Adani Ports on Tuesday, amounting to 2.69% of its stake in the company, according to a disclosure to the BSE. The Adani Port stock has fallen 20% since January 24. On Monday, Adani Total Gas and Adani Green had fallen 20% each - the lowest permissible trading limit. Adani Power, Adani Wilmar, and NDTV hit the 5% lower circuit limit.