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Monday, March 4, 2024

Adani Group Stocks Rise By 15%; Understand Why. Adani Green, Adani Enterprises, Adani Power


<p>In Monday’s intraday session, shares of the Adani Group surged up to 15% on the BSE amid strong market momentum after the Bharatiya Janata Party (BJP)’s resounding victory in three Assembly elections.</p>
<p><img decoding=”async” class=”alignnone wp-image-295462″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-adani-group-stocks-rise-by-15-understand-why-adani-green-adani-enterprises-adani-p-750×422.jpg” alt=”theindiaprint.com adani group stocks rise by 15 understand why adani green adani enterprises adani p” width=”1169″ height=”658″ title=”Adani Group Stocks Rise By 15%; Understand Why. Adani Green, Adani Enterprises, Adani Power 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-adani-group-stocks-rise-by-15-understand-why-adani-green-adani-enterprises-adani-p-750×422.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-adani-group-stocks-rise-by-15-understand-why-adani-green-adani-enterprises-adani-p-768×432.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-adani-group-stocks-rise-by-15-understand-why-adani-green-adani-enterprises-adani-p-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-adani-group-stocks-rise-by-15-understand-why-adani-green-adani-enterprises-adani-p-150×84.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-adani-group-stocks-rise-by-15-understand-why-adani-green-adani-enterprises-adani-p.jpg 948w” sizes=”(max-width: 1169px) 100vw, 1169px” /></p>
<p>With the exception of Adani Power and Adani Port, the other stocks in the Adani Group have underperformed the market in 2023 due to a report that was unfounded and caused the group’s shares to plummet in January. The article was published by US-based short seller Hindenburg Research.</p>
<p>Adani Enterprises, the flagship company of the Adani group, had a 10% increase after the results of the assembly elections in Chhattisgarh, Madhya Pradesh, and Rajasthan, while Adani Energy Solutions saw a 14% increase. Adani Green Energy and Adani Power increased by more than 12%. Adani Wilmar, Adani Total Gas, and Adani Ports all posted gains of 5-8 percent.</p>
<p>“Markets will find solace in these results, which are seen as a semi-final for the upcoming Loksabha elections on May 24 in terms of political stability. The fact that the BJP has managed to hold onto power in large states like MP for five consecutive terms, escape anti-incumbency sentiment, and win back both Rajasthan and Chhattisgarh should give them a strong advantage going into the federal elections in 2024, according to Motilal Oswal.</p>
<p>State elections “remove a major overhang of political uncertainty for the markets for the next five months, even though they have historically shown no correlation with Loksabha elections (BJP had lost these three states in December 2018 but won the 2019 Loksabha elections with a better majority than 2014),” the statement stated.</p>
<p>According to observers, since the Supreme Court wrapped up hearings in a litigation where market regulator SEBI is looking into serious claims of corporate malfeasance against the group, stocks have been climbing.</p>
<p>With a $65.8 billion fortune, Gautam Adani now holds the 20th position on the Bloomberg Billionaires Index. According to Bloomberg, Gautam Adani’s net worth increased by $5.6 billion last week as a result of a stock market surge in his companies.</p>
<p>In the recent week, the Adani Group’s fortune increased by almost Rs 1.76 lakh crore.</p>
<p>Last week, the Supreme Court postponed making a decision on PILs requesting a court-monitored investigation into claims made by Hindenburg Research that the Adani group had violated stock market laws. Regarding protecting investors from market swings, the Court questioned SEBI. Petitioners were prompted by the substantial decline in the value of Adani enterprises due to claims of inflated share prices. The extreme volatility of the stock market throughout the proceedings prompted the Court to intervene.</p>
<p>Investors are hopeful about the Adani Group’s future despite the conglomerate facing uncertainty due to the continuing regulatory investigation and upcoming court ruling. This optimism stems from the company’s recent profits.</p>
<p>In the first half of 2023–24 (H1FY24), listed Adani group firms reported a significant year-over-year (Y-o-Y) rise in net profit, more than doubling to Rs 24,494 crore despite a fall in sales. According to ACE Equities statistics, these 10 companies had a 92% increase in net profit in H1FY24, however, their net sales decreased by 14.4% to Rs 1.50 trillion. Furthermore, by September 2023, the overall debt was somewhat lower than in FY23 ($2.12 lakh crore) at Rs 2.18 lakh crore, a 1.2% decline.</p>


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