Adani Group stocks’ mcap rises 6.2%, best since January 24

MUMBAI: The winning run for the beleaguered Adani Group continued for the second consecutive session as the ports-to-FMCG conglomerate’s stocks closed with strong gains – the first time all 10 scrips have gained since the Hindenburg Research report was published.
The group flagship Adani Enterprises led with a 14.7% gain, while six more closed at the 5% upper circuit level. In two days, Adani Enterprises has gained nearly 30%.
The strong gains in these stocks came on the back of reports that the group had secured a $3-billion line of credit from sovereign wealth funds, although no names were revealed.

At the close of Wednesday’s session, the group’s combined market cap was Rs 7.6 lakh crore, an addition of Rs 44,145 crore in a day, the best single-session gain in its market value since February 8, BSE data collated by TOI showed. In terms of percentage, the 6.2% rise in market value was the biggest gain since January 24. In the last 2 sessions, Adani Group market capitalisation has risen by about Rs 74,200 crore.
Late on January 24, US-based short-seller Hindenburg Research had published a report alleging that Adani Group was indulging in stock manipulation, accounting fraud and other corporate malfeasance. The group has denied the allegations.
In about a month since the Hindenburg report was published, Adani Group has lost over Rs 12-lakh-crore worth of market value. In the last two days, there has been some recovery and, by Wednesday’s close, the total loss in market value is at Rs 11.6 lakh crore.
Among the group’s stocks, at 82% loss, Adani Total Gas has lost the most. Other top laggards are Adani Transmission (-76%) and Adani Green Energy (-73%). Adani Ports has lost the least (-21%), followed by ACC (-24%) and Ambuja Cements (-29%).
LIC rallies 4%, closes above Rs 600 again
The stock price of LIC, the state-owned life insurance major that was pummelled in the last couple of weeks due to its exposure to Adani Group stocks, on Wednesday rallied over 4% to close above the Rs 600 mark again. On Friday, the stock had plunged to an all-time low of Rs 566 on the back of reports that due to the crash in Adani Group’s scrips, its equity exposure of Rs 30,100-crore to the group was in the red.