Stocks of all the 10 listed Adani Group firms ended with gains on Wednesday, continuing the positive momentum amid a recovery in the broader equity market.
The Adani Enterprises stock jumped 14.70 per cent to settle at Rs 1,564.55 on the BSE. In intra-day trade, it rallied 15.83 per cent to Rs 1,580. In two days, the company’s stock has climbed 31 per cent.
The market valuation of Adani Enterprises has jumped Rs 42,219.95 crore in two days. Adani Transmission advanced 5 per cent, Adani Green Energy rose 4.99 per cent, Adani Wilmar gained 4.99 per cent, NDTV rallied 4.99 per cent and Adani Power climbed 4.98 per cent.
Shares of Adani Total Gas jumped 4.85 per cent, Ambuja Cements (3.32 per cent), ACC (2.14 per cent) and Adani Ports (1.61 per cent).
The broader equity market also recovered after falling in the past eight trading sessions, with the BSE Sensex climbing 448.96 points or 0.76 per cent to settle at 59411.08 points. The cumulative market valuation of the 10 companies stood at Rs 7.56 lakh crore at the end of trading on Wednesday.
Adani Group stocks have taken a beating on the exchanges after US-based short seller Hindenburg made a litany of allegations, including fraudulent transactions and share price manipulation, against it. The group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.
S&P status quo
S&P Global has affirmed ‘BBB-’ issue rating on Adani International Container Terminal Pte Ltd (AICTPL) and said the outlook is stable.
The stable outlook reflects that AICTPL will maintain predictable cash flow with fully market-based pricing and volume over the next 12-24 months. AICTPL is a 50-50 joint venture between Adani Ports and Special Economic Zone and Terminal Investment (TIL).
It works as a container terminal operator based in Mundra, Gujarat. It is at a prime location with favourable water depth compared with other nearby ports, besides broad rail and road connectivity to India’s industrial hinterland.
“We affirmed our issue rating on AICTPL because we believe our revised criteria for project finance transactions does not impact our assessment of the project’s creditworthiness,” S&P Global Ratings said in a statement.
Issuers and debt issues that receive a rating of “BBB” or above are considered by regulators and market participants to be “investment-grade”, according to S&P Global Ratings. S&P further said that it believes an upgrade is unlikely over the next 12-24 months because the rating on AICTPL is constrained by its sovereign rating on India.
“In addition, we do not expect the standalone credit profile to improve, given the overall financial metrics are constrained by the large balloon payment,” it said.
The Supreme Court is scheduled to pronounce on Thursday its order on a batch of PILs on the recent Adani group shares crash triggered by Hindenburg’s allegations. The apex court is likely to deliver its verdict over the setting up of a panel of domain experts for strengthening existing regulatory measures for stock markets.
While reserving its order, the top court on February 17 had refused to accept in a sealed cover the Centre’s suggestion on a proposed panel of experts, saying it wanted full transparency for the protection of investors.
