Shares of Adani Enterprises Ltd gained 15% today after the flagship company of the Adani Group said its arm Mundra Aluminium Ltd has been declared as the preferred bidder for the Kutrumali bauxite block by the Odisha government. Adani Enterprises shares gained 14.88% intraday to Rs 1,364 against the previous close of Rs 1364.05 on BSE. The stock has lost 7.38% in a year and fallen 60.56% in 2023. Adani Enterprises shares opened with a gain of 3.96% at Rs 1418 today. Total 13.66 lakh shares of the firm changed hands amounting to a turnover of Rs 204.60 crore on BSE. Market cap of the firm rose to Rs 1.73 lakh crore on BSE.
In terms of technicals, the relative strength index (RSI) of the stock stands at 29.3, signaling the stock is extremely oversold. The stock has a one-year beta of 1.6, indicating high volatility during the period. Adani Enterprises shares are trading higher than the 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
Adani Enterprises stock has gained 31.21% in the last two sessions, considering the intraday high of the current trading session. In the previous session, the stock surged 24% to the closing level of Rs 1364.05 compared to the intraday low of Rs 1,103. The stock is trading higher for the second straight session today.
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Meanwhile, a letter of intent dated February 27, 2023, has been issued to Mundra Aluminium Ltd by the Odisha government in respect of the following mineral block in Odisha.
Mundra Aluminium Ltd is a wholly owned subsidiary of Adani Enterprises Ltd, incorporated with the objective of carrying out the business of mining, refining, smelting, development, production and operations of bauxite, alumina and aluminium. The Kutrumali bauxite block contains geological reserves of 128 million tonnes (MT). The block lies in the Kalahandi and Rayagada districts of Odisha.
In the current trading session, sentiment around the Adani Group stock was also supported by a report that said banks led by the State Bank of India (SBI) who were conducting an annual review have decided to maintain status quo on credit limits of the Adani Group’s flagship firm. Another report which said the Adani Group plans to prepay or repay share-backed loans worth between $690-790 million by end of March this year has also pushes the stock higher during the last two trading sessions.
However, the stock is trading 54.48 lower compared to its January 24 level of Rs 3,442.75 on BSE.
Other Adani Group shares were also trading higher in the afternoon session today.
Adani Ports shares hit an intraday high of Rs 615.85, up 3.92% on BSE. Market cap of the firm rose to Rs 1.30 lakh crore.
Adani Total Gas shares hit upper circuit of 5% at Rs 714.2. The stock has gained after 20 days of consecutive fall. Market cap of the firm rose to Rs 1.30 lakh crore. Adani Wilmar stock was also stuck in the upper circuit of Rs 379.45, up 5% on BSE. Market cap of the firm rose to Rs 49,316 crore.
Stock of Adani Transmission was also stuck in the upper circuit of 5% at Rs 674.65 on BSE. Market cap of the firm rose to Rs 75,256 crore.
The stock of Adani Power too was stuck in the upper circuit of 5% at Rs 153.75 against the previous close of Rs 146.45. Market cap of the firm rose to Rs 59,300 crore on BSE.
Meanwhile, Adani Green Energy shares also rose 5% to Rs 509.80. The stock has been gaining for the last 2 days and risen 10.24% returns during the period. Earlier, the stock opened with a gain of 4.02% at Rs 509.80 on BSE today.
The Hindenburg Research report that jolted the Adani Group’s fortunes and future plans came on January 24 this year, just before Adani Enterprises’ Rs 20,000 crore follow-on-public offer (FPO) opened. The Hindenburg report accused the Adani Group of accounting fraud and stock manipulation. The group has lost around $125 billion in market value in three weeks since the report came out.
The Adani Group had denied Hindenburg’s allegations as being “malicious”, “baseless”, and a “calculated attack on India.”
DLF chairman KP Singh had said claims about the Hindenburg report on Adani Group impacting India’s potential as an investment destination were completely nonsensical. Singh said, “India is too big a country today. So, this story will die down. Investment will not be hurt.”
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