Gautam Adani-led Adani Enterprises, the flagship company of Adani Group, was the top gainer on the Nifty 50 index gaining over 20 per cent in Wednesday’s trade. This led to significant reversal of losses which the conglomerate witnessed following a report by Hindenburg Research.
The flagship firm’s stock had bounced back by around 40 per cent. Adani Ports and Special Economic Zone with over 8.35 per cent gains become the second-top gainer on the Nifty 50 index.
Adani Transmission, Adani Wilmar and Adani Power all hit upper circuits of 5 per cent. Adani acquired companies – NDTV and Ambuja Cement were up by 4.97 per cent and 0.2 per cent respectively. While Adani Green Energy, Adani Total Gas and Adani owned ACC still stayed in their lower circuits at the end of Wednesday’s trading session.
As an impact of the report published by Hindenburg Research, Adani group’s market value fell by nearly $120 billion. Now the hike in just two trading sessions has helped reduce total loss to below $110 billion. The conglomerate’s decision to make prepayment of loans worth $1.11 billion is the major contributing factor for surge.
The Sharp surge in the stock value of conglomerate’s listed firms has boosted the hopes and trust of investors. This seems like Adani Group is capturing their position in the market but still investors must be cautious about their investments as there is a threat of volatility.
