U-turn! Adani stocks spring back on buying at lower levels

NEW DELHI: After weeks of getting hammered by bears, Adani stocks had their best day in a month on Thursday as investors showed buying interest at lower levels.

Out of the 10 Adani stocks, eight were trading in the green zone, with NDTV and Adani Power locked in their 5% upper circuit limits. Adani Group's flagship entity Adani Enterprises was up 2.4% at Rs 1,821.

Earlier in the day, index provider MSCI said it will postpone implementation of updates to weightings for Adani Total Gas and Adani Transmission to the May benchmark review. Both the stocks were, however, trading in the red zone today.

A reduction in weightage in MSCI indices not only leads to outflow from passive funds but is also seen as sentimentally negative by the investor community.

MSCI had earlier said it will reduce weightings of four Adani Group companies - Adani Total Gas, Adani Transmission, Adani Enterprises and ACC - with effect from March 1. The four companies had a combined 0.4% weighting in the MSCI emerging markets index as of January 30.

In the last 16 trading sessions since the release of an explosive report by American short-seller Hindenburg Research, Adani stocks have lost about half of their market value or nearly Rs 10 lakh crore.

Billionaire Gautam Adani-led conglomerate has been trying to soothe investors' nerves worried over the allegations made in the report. Top officials of the company are scheduled to hold calls with bond holders after a fall in the price of its debt.

In a compendium filed with exchanges, the conglomerate said that it has “no material refinancing risk and near-term liquidity requirement as there is no near-term significant debt maturity.” Citing rating affirmation from international and domestic rating agencies, it also said “signifies the underlying credit quality with adequate financial profile.”