Adani bears thrown out? Rally on for 7th day as 5 stocks hit 5% upper circuit

NEW DELHI: The rally in Adani stocks today continued unabated for the seventh consecutive trading session as investors looked beyond the allegations made in the scathing Hindenburg report.

Out of 10 Adani stocks, 5 of them - Adani Green, Adani Wilmar, Adani Total Gas, Adani Transmission and Adani Power - were trading at a 5% higher circuit limit today.

Shares of the conglomerate's media arm NDTV were also trading 4.6% higher at Rs 253.55. Adani Enterprises was flat at Rs 2,042.50.

Following the up move, the combined market capitalisation of all Adani stocks has crossed the Rs 9 lakh crore mark, but it is still half of what it used to be before the Hindenburg-led crisis.

The rally in Adani stocks, which began after the group started roadshows to convince investors of the strength of its balance sheets, got another shot in the arm last night after it was reported that Gautam Adani and his family prepaid all borrowings backed by the company shares.

The international roadshow began in Singapore and Hong Kong before moving to Dubai and London and will continue in the US, according to reports.

US-based GQG Partners, which invested over Rs 15,000 crore in four Adani companies last week, is likely to expand its investment in the group.

"Chances are we'll probably buy more because we typically initiate a position, and then depending on how things go and how the earnings come, through we tend to get it to full size because we're not at full size at this point," the firm's founder Rajiv Jain said.

The spate of positive news flow around Adani companies led to a short covering. "The assets portfolio across the group, all infrastructure assets put together, can produce more than Rs 50,000 crore of EBITDA in a year which is growing at the rate of around 20% plus," said market expert Deven Choksey.

In the meantime, NSE has placed Adani Enterprises, Adani Power, and Adani Wilmar under the short-term additional surveillance mechanism framework with effect from today. During instances of high volatility in stocks, exchanges move them to short-term or long-term additional surveillance framework to safeguard investors from speculative trades.

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