Why are Adani stock prices fluctuating on Tuesday?

Street protests have broken out as a result of the crisis at Gautam Adani’s conglomerate, which is battling accusations of stock manipulation and fraud. This has sparked financial contagion. 

On Tuesday, the stocks of Adani Group had a mixed pattern, with most of them increasing and some continuing to extend their lower circuit levels. The third quarter of FY23’s financial results are now in focus. Street protests have broken out as a result of the crisis at Gautam Adani’s conglomerate, which is battling accusations of stock manipulation and fraud. This has sparked financial contagion.

Adani Wilmar, an FMCG company in the conglomerate, traced both circuits while Adani Power and Adani Total Gas struck consecutive lower circuits. Adani Green witnessed a seesaw act. Adani Ports, Adani Transmission, and Adani Enterprises, the company’s flagship, gained

FMCG firm, Adani Wilmar witnessed a mixed sentiment. In the early deals, the stock touched a 5% lower circuit of ₹361.40 apiece on BSE. But soon after the stock lobbed high to trade at a 5% upper circuit of ₹399.40 apiece on BSE. Its market cap is around ₹51,909 crore. This would be the first upside after eight consecutive days of a selloff in Adani Wilmar. Between January 25 to February 6th, Adani Wilmar’s stock hit back-to-back lower circuits.

At the time of writing, the share price of the group’s flagship firm, Adani Enterprises, was trading at 1,617.95 per share, up 45.55 or 2.90% on the BSE. The stock increased by more than 5% in early trades, reaching an intraday high of $1,655.35 per share. Its market value as of right now is more than $1.86 trillion. 

The price of Adani Ports and Special Economic Zone (ASPEZ) shares is trading close to their day’s high of $567.00 per share. The stock is currently trading at 566 per share on the BSE, up 3.65%. Its market capitalization exceeds 1.22 lakh crore. This stock has increased for three days in a row!

Promoters prepaying $1.114 billion before to its September 2024 maturity date may be one of the key factors propelling Adani shares. After that, Adani will eventually release stock interests in three of its companies. 

168.27 million shares, or 12% of the promoters’ holding in Adani Ports, 27.56 shares, or 3% of the promoters’ holding in Adani Green, and 11.77 million shares, or 1.4% of the promoters’ holding in Adani Transmission, are among the companies in which the group will issue shares. 

Additionally, Adani Ports stock is up following last week’s announcement of the firm’s operational results for January 2023. Ts operating performance for January 2023 was last week during the month under evaluation.

The start of Q3 earnings for the group’s subsidiaries, with Adani Transmission the most recent to announce its financial results, may also be contributing to the positive trend. 

Adani Transmission’s third quarter of fiscal year 23 saw a 77.8% YoY growth in net profit to 474.7 crore and a 22% YoY increase in revenue to 3,551.70 crore. EBITDA increased 64% year over year to 1,477.5 crore.