Adani Power hits fourth 5% upper circuit; No respite for Adani Green

Adani Power was locked at the 5 per cent upper limit, and has rallied 21 per cent in last four days. Adani Green hit 5 per cent lower circuit, and has shed 70 per cent since the Hindenburg allegation.

Shares of these three Adani Group stocks exhibited a divergent trend on Tuesday in intra-day trades on the BSE amid mixed news flow. 

Adani Power was locked at the 5 per cent upper limit at Rs 171.15 for the fourth straight trading day. The counter registered a volume of around 10.72 lakh shares on the BSE, with pending buy orders to the tune of ht 4.13 lakh shares as of 09:28 AM. Meanwhile, the S&P BSE Sensex was up 0.2 per cent at 60,822.

In the last four days, the stock has surged over 21 per cent, but still is down nearly 38 per cent from its January 24 close, since the US short seller Hindenburg Research accusation on the Group of market manipulation and accounting fraud. 

Recently, Adani Group decided against bidding for a stake in state-backed electricity trader PTC India. The report stated that Adani was among the possible bidders reviewing preliminary information on the Mumbai-listed company, Bloomberg News reported in January.

Earlier Adani Power called-off its plan to acquire a coal plant project in central India that could have been valued at Rs 7,000 crore ($848 million) in a deal.

The buying at the counter is also attributed to the recent NSE announcement of including Adani Power in the Nifty 500, Nifty 200, Nifty Midcap 100, Nifty Midcap 150, Nifty LargeMidcap 250 indices from March 31, 2023. READ MORE

Similarly, shares of Adani Ports & SEZ gained up 1.5 per cent at Rs 589, after the company paid Rs 1,000 crore loan and promised to repay more as the embattled conglomerate mapped a comeback strategy post the recent sellout.

Adani Ports was among the least losers within the Group shares during the sell-off; the stock is down 22.5 per cent from its January 24, 2023 close. ACC was the least loser so far down 20 per cent.

Adani Group has brought in Kekst CNC as a global communications advisor to help change the narrative building in international media. It has also engaged American law firm Wachtell, Lipton, Rosen and Katz to fight back against the short seller's allegations. 

The Group's gross debt stood at Rs 2.26 lakh crore as of September 2022 and had cash of Rs 31,646 crore. READ MORE

Meanwhile, Adani Green was locked at the 5 per cent lower circuit at Rs 568 amid reports that the company has decided to review its capital expenditure (capex) plan of Rs 10,000 crore for financial year 2023-24 (FY24). READ MORE

Adani Green along with Adani Total Gas and Adani Transmission are three of the worst hit counters in the sell-off. The stock has plunged as much as 70 per cent. While, the other two Group stocks have also tumbled up to 77 per cent and 70 per cent, respectively.