Shares of Adani Enterprises crashed in Wednesday’s trade, halting their upward run of two straight sessions. The stock nosedived 34.72 per cent to hit a day low of Rs 1,942 against a previous close of Rs 2,975, just shy of its lower circuit of Rs 1,933.75. The scrip eventually settled 28.45 per cent lower at Rs 2,128.70.
The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 15.85. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a negative price-to-equity (P/E) ratio of 307.65.
Around 9.67 lakh shares changed hands today on BSE, which was more than double compared to Adani Enterprises’ two-week average volume of 4.06 lakh shares. Turnover on the counter stood at Rs 243.98 crore, commanding a market capitalisation (m-cap) of Rs 2,42,672.04 crore. There were 19,997 sell orders on BSE against buy orders of 11,078 shares.
All of the 10 listed Adani Group stocks (including recently acquired ACC, Ambuja Cements and NDTV) fell sharply today after a report claimed that Credit Suisse had stopped accepting bonds of Adani companies as collateral for margin loans to its private banking clients.
The stocks started tumbling after a report by US-based short seller Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.
The group accused Hindenburg of not doing proper research and “copy-pasting” from the company disclosures.
It said that the timing of Hindenburg’s report clearly showed the short seller’s intention to damage “the follow-on public offering from Adani Enterprises, which is the biggest FPO ever in India.”
However, the Rs 20,000 crore FPO from Adani Enterprises got sailed through and was fully subscribed after high-net-worth individuals and institutional investors bid strongly. Though, the offer received poor to tepid response from retail investors and employees.
“Despite a fully subscribed FPO and Budget 2023, sentiment towards Adani group stocks remains negative and hence a further fall was seen today. Rs 2,013 is the next strong support. A daily close below this level could lead to Rs 1,540. Rs 2,665 now becomes major resistance,” said AR Ramachandran from Tips2trades.
Meanwhile, Indian equity benchmarks ended mixed amid highly volatile trade. The 30-share BSE Sensex pack rose 158 points or 0.27 per cent to close at 59,708; while the broader NSE Nifty index moved 46 points or 0.26 per cent down to settle at 17,616.
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