Adani Stocks Rally After Panel Report

Two of the stocks which fell well over 20% so far this month – Adani Total Gas and Adani Transmission – on being excluded from the MSCI Standard Indices by global index provider MSCI also staged smart recoveries.

The rally from day lows coincided with the market recovery in the last hour-and- a-half of trade, which was led by Adani Enterprises and Adani Ports, two Nifty 50 stocks. Group flagship Adani Enterprises ended up 3.5% at ₹1,956 from the day’s low of ₹1,872.10. Adani Ports clocked a 3.4% gain to close at ₹688.10 in the second half of trade.

Such was the impact of the panel report’s release that some of the group stocks rallied from intraday lower circuits to close near the upper circuit filters, or swing by nearly 10%, in the closing hours of trade. Adani Transmission recovered from the 5% lower circuit at ₹714.05 a share to close at ₹787.35, up 4.76%.

Similarly, Adani Total Gas, which was frozen at the 5% lower circuit of ₹633.35, which happened to also be a 52-week low, rallied in the last hour of trade to close at ₹688.10, up 3.22%.

The stocks are expected to witness a combined $360 mn of outflows from passive funds when the MSCI changes are effected by month-end, according to Nuvama brokerage. However, the sentiment on them turned sour with Adani Total having fallen 27% so far this month, closing of ₹688.10 while Adani Transmission has shed 23.5% so far this month.