Shares of Adani Enterprises extended their gains for the fourth straight session in Friday’s trade. The stock jumped 11.09 per cent to hit a day high of Rs 1,784.95 over its previous close of Rs 1,606.70. At today’s high price of Rs 1,784.95, the stock has recovered 75.49 per cent from its 52-week low level of Rs 1,017.10, hit on February 3, 2023.
Shares of Adani stocks jumped after US firm GQG Partners Inc picked up shares worth Rs 15,446 crore in the Indian conglomerate. GQG Partners took stakes between 2.5 per cent and 4.1 per cent in various Adani companies, including Adani Enterprises, Adani Ports and Special Economic Zone, Adani Transmission and Adani Green Energy.
In a separate development, Supreme Court has asked market regulator SEBI (Securities and Exchange Board of India) to investigate Adani Group for any lapses related to public shareholding norms or regulatory disclosures.
SEBI is already examining a January 24 report by US-based short seller Hindenburg Research which alleged the Adani Group improperly used offshore tax havens and manipulated stocks. Adani, however, denied any wrongdoings.
The court told SEBI to check transactions with related parties, manipulation, if any, of stock prices and violation of public shareholding rules.
Billionaire Gautam Adani welcomed the Supreme Court order. “It will bring finality in a timebound manner. Truth will prevail,” he wrote in a Twitter post.
The Hindenburg allegations severely dented the Indian conglomerate’s market valuations.
In addition, the top court formed a panel to be headed by a retired Supreme Court judge to examine how investor protection mechanisms can be strengthened. The six-member panel, which is due to report back within two months, will include former State Bank of India (SBI) chairman OP Bhatt and renowned banker KV Kamath.
Adani Enterprises’ stock was last seen higher than 5-day and 20-day moving averages but lower than 50-day, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 44.38. A level below 30 is defined as oversold while a value above 70 is considered overbought. The lender’s stock has a price-to-equity (P/E) ratio of 130.04.
The scrip has a one-year beta of 1.62, indicating high volatility.
Support on the counter could be seen at Rs 1,608, a technical analyst said. “Adani Enterprises looks bullish on the daily charts and a close above Rs 1,722 today could lead to a target of Rs 1,875 in the near term. Support will be at Rs 1,608,” said AR Ramachandran from Tips2trades.
Meanwhile, Indian equity benchmarks returned to positive territory in early deals today, led by gains in banks, metals, financials and energy stocks.
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