Shares of Adani Enterprises Ltd extended their gains for the fifth straight session on Monday. The stock jumped 5.51 per cent to settle at Rs 1,982.85 over its previous close of Rs 1,879.35. The stock has recovered 78.16 per cent in the last five sessions.
Most Adani stocks started rebounding after US firm GQG Partners Inc, last week, picked up shares worth Rs 15,446 crore in the Indian conglomerate. GQG Partners took stakes between 2.50 per cent and 4.10 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, refuted the claims.
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. At today’s closing of Rs 1,982.85, the group’s flagship firm — Adani Enterprises — alone traded 52.67 per cent lower from its 52-week high of Rs 4,189.55, hit on December 21 last year.
Adani Enterprises’ stock traded higher than the 5-day and 20-day moving averages but lower than the 50-day, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 50.77. 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 152.10.
The scrip has a one-year beta of 1.72, indicating high volatility.
Meanwhile, Indian equity benchmarks rose sharply today, extending their gains for the second straight session. The domestic indices’ surge was propelled by gains in technology, energy and automobile stocks.
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