Adani Transmission, Adani Total Gas shares hit 5% upper circuit despite omission from MSCI index

Notwithstanding the exit from the MSCI Global Standard Index as a part of May rejig, Adani Transmission and Adani Total Gas shares hit the 5% upper circuits on the BSE in Thursday's trade.

Adani Transmission's gains come on the back of six consecutive sessions of declines where the stock lost more than Rs 134 per share or 15% in value.

The stock, meanwhile, has rebounded after hitting a 52-week low of Rs 631.50 on March 1. From a 52-week high of Rs 4,236.75, hit on September 16, 2022, the stock price plummeted 85% as a result of the Hindenburg report.

As for Adani Total Gas shares, the prices have reversed from the 52-week lows of Rs 633.35 they fell to on May 19. The stock had hit a 52-week high of Rs 4,000 on January 23.

The exit of Adani Transmission and Adani Total Gas from the MSCI Global Standard index was expected to trigger outflows of $189 million in the case of Adani Transmission and $167 million in the case of Adani Total Gas according to a Nuvama Alternative & Quantitative Research report.

The stocks carried weights of 0.31 and 0.28, respectively according to the report.

Meanwhile, billionaire Gautam Adani's conglomerate is looking to raise about $3 billion through an equity share sale to institutional investors in the boldest comeback strategy after the ports-to-energy group was hit by a damning report of the US short seller.

Boards of Adani Enterprises - the group's flagship firm - and electricity transmission company Adani Transmission have already approved raising up to Rs 21,000 crore (over $2.5 billion) through share sales to qualified institutional investors.

Post-board approvals, Adani Enterprises and Adani Transmission have sought shareholder approval.

Adani Green Energy's board may meet in the first or second week of June for approving the fundraising, they said.

Meanwhile, Adani Enterprises, Adani Power, Adani Green Energy, Adani Wilmar, NDTV, ACC and Ambuja gained between 0.40-2% in the intraday trade. Adani Ports and Special Economic Zones was the only stock from the Adani stable trading in the red.

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