Adani group companies experienced strong buying activity on January 14, with all stocks trading in the green. Adani Power emerged as the top gainer, rallying 18% to reach 532.95 apiece on the NSE. Adani Energy Solutions and Adani Green Energy also surged over 12%, with their shares trading at 773.55 and 1,002.85 respectively.
Adani Enterprises saw a significant rise of over 9%, trading at 687.60 apiece, while NDTV shares also increased by 9%, reaching 152.10. The flagship company of the Adani group, Adani Enterprises, which is part of the Nifty 50 pack, gained 8.50% to trade at 2,414.25 per share. ACC, Adani Ports, Ambuja Cement, and Sanghi Industries within the group gained between 4-5%.
Adani Wilmar, despite recent bearish activity due to its offer for sale, rebounded and gained around 3%. Market experts attribute the rise in Adani group shares to speculative buzz around fundraising plans. Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “The market expects Donald Trump’s re-entry at the White House to make it easier for the Adani group to raise overseas funds, and hence, we are witnessing fresh buying interest in Adani group shares.”
An Adani Group spokesperson declined to comment on the development but mentioned that the company is actively engaged in discussions with various institutions as part of its ongoing business activities.
Despite the rally, analysts advised against fresh buying given the speculative nature of the gains. Mahesh M Ojha, AVP — Research at Hensex Securities, recommended investors wait for an official statement from the Adani group before buying. He advised those exposed to Adani group shares to maintain strict stop loss and remain invested.
Adani Energy Solutions Ltd. saw its share price climb over 8% early on Tuesday following strong order wins in the third quarter of the current fiscal year. The company’s third-quarter order book, worth Rs 28,455 crore, significantly boosted investors’ confidence, as per a provisional business update.
Key wins for Adani Energy Solutions include the Khavda Phase IV Part-D project in Gujarat, valued at Rs 3,455 crore, and the Rajasthan Phase III Part-I order, with a preliminary project cost of Rs 25,000 crore.
Adani stocks surge on buying interest
The latter represents the company’s largest order win to date.
The under-construction project pipeline for Adani Energy Solutions expanded significantly to Rs 54,700 crore, up from Rs 17,000 crore at the beginning of the year. Additionally, the transmission network length grew by 30% year-on-year, reaching 26,485 circuit kilometers, while power transmission capacity increased by 54% to 84,286 megavolt-amperes. By 10:25 a.m., Adani Energy Solutions’ share price was trading 8.2% higher at Rs 748 apiece.
During intraday trading, the price had advanced as much as 8.7%. The benchmark NSE Nifty 50 was up by 0.3% at the time. All six analysts tracking Adani Energy Solutions currently have a ‘buy’ rating on the stock.
According to Bloomberg data, the 12-month average analyst price target of Rs 1,521 implies a potential upside of 106%. The Adani Group stocks were at the forefront of the weak recovery in India’s key indices, Nifty and Sensex. The recovery efforts have been hampered by several factors affecting investor sentiment and market stability.
Last week, the CNX SmallCap 100 index declined by 7.3%, and on Monday, it further crashed by 4%. The previous significant drop of such magnitude was in December 2022, when it fell by 8.33%. This sharp decline comes after months of market churning.
The Indian stock market has been witnessing several ups and downs, with regulatory issues and market dynamics playing significant roles. The National Stock Exchange (NSE) has seen remarkable success but also faced challenges, including regulatory capture and algorithmic trading scams. The current market scenario underscores the importance of careful stock selection and monitoring sector-wise movements, especially in times when indices are showing signs of vulnerability.