Adani group stocks, including Adani Enterprises, Adani Ports & SEZ, Adani Power and Adani Total Gas, staged a decent rebound from early losses to trade in the green on Friday. The price movement in Adani group shares comes after a sharp slump seen in the previous session following the latest news on Gautam Adani's scrutiny by the US court.
Adani Green Energy shares spiked over 6%, Adani Enterprises share price rallied nearly 4%, Adani Power shares, Adani Total Gas shares gained over 3% each, while Adani Ports stock price gained over 2%.
Ambuja Cement shares jumped more than 6%, while ACC stock price spiked over 4% and NDTV share price gained over 2%.
On November 21, Adani Group Chairman Gautam Adani, along with several other individuals, including nephew Sagar Adani, were indicted in New York for allegedly orchestrating a large-scale bribery and fraud scheme.
The Indian conglomerate has dismissed as “baseless” the US charges that its billionaire founder, Gautam Adani, paid over $250 million in bribes.
In a statement, the conglomerate rejected the allegations made by the US Department of Justice and the Securities and Exchange Commission against Adani Green's directors, asserting that it would seek all possible legal recourse.
Analysts believe the sell-off in Adani Group stocks is likely to be a short-term reaction to the recent development and they do not expect any impact on fundamentals of the Gautam Adani-led group companies.
Speaking on Gautam Adani's latest news about scrutiny by the US court, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “The current selling in Adani Group shares are mere short-term sentiment. Anything happening in the US or in the US court won't impact the fundamentals of Adani Group of companies. We have seen this happening in previous cases when Hindenburg Research alleged Gautam Adani and his companies for misappropriation of funds. I expect a strong bounceback in Adani Group shares once the matter settles down.”
Asked about the Adani share best suited for bottom fishing today, Sumeet Bagadia, Executive Director at Choice Broking, said, “Adani Ports shares are the best suited in Adani Group shares. One can buy Adani Ports shares at the current market price for the near-term target of ₹1,250, maintaining a strict stop loss at ₹1,000 apiece. Adani Ports shareholders are advised to maintain buy-on-dips until the above-mentioned stop loss is triggered.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
