Adani Enterprises shares halt six-day winning run, slip 7% today

Shares of Adani Enterprises Ltd fell sharply in Thursday's trade, halting their upward trend of six consecutive sessions. The stock slipped 6.66 per cent to hit a day low of Rs 1,903.85 over its previous close of Rs 2,039.65.

The sharp movement in share price came after Adani Enterprises and two other group stocks (Adani Power & Adani Wilmar) were put under the short-term additional surveillance mechanism (ASM) framework by National Stock Exchange (NSE).

Shares of Adani Group companies have seen a massive drop in their market valuation after Hindenburg Research's report alleged stock manipulation and improper use of tax havens and flagged "substantial" debt levels. Adani, however, refuted the claims.

However, the stocks recovered some lost ground after US firm GQG Partners Inc picked up shares worth Rs 15,446 crore in the Indian conglomerate.

In addition, 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 Hindenburg Research's report. The top 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.

At today's day low of Rs Rs 1,903.85, the group's flagship firm -- Adani Enterprises -- alone traded 54.56 per cent lower from its 52-week high of Rs 4,189.55, hit on December 21 last year.

The stock was last seen trading 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 49.47. 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 165.08.

The scrip has a one-year beta of 1.75, indicating high volatility.

Meanwhile, Indian equity benchmarks fell in today's deals, dragged by automobile, consumer goods and technology stocks.

Also read: Adani Power, Adani Green, Adani Wilmar, 2 other Adani group shares hit 5% upper circuit limits; here's why

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