Adani Ent, Adani Ports Escape Bears, 5 Adani Shares Shed 3-10%: Why Gautam Adani-Led Stocks Are Falling?

After a month-long bull roar, Gautam Adani-backed stocks are witnessing huge profit-booking. On Wednesday, all seven Adani shares were in red by falling in the range of 1% to 10%. The least to take beating from bears would be Adani Ports as the company announced its fundraising plan of Rs 5,000 crore. The worst to take hit were Adani Green, Adani Energy and Adani Total Gas. This is despite the port-to-power conglomerate's announcement of investing 100 million dollars in Green Energy Transition over 10 years.

Adani Shares!

On December 13th, Adani Total Gas dropped by 10% followed by Adani Energy Solutions and Adani Green Energy which dipped by 7.5% and 6.07% respectively. Further, Adani Power shed 3.6%, while Adani Wilmar dived by 2.7%, and flagship company Adani Enterprises fell by 1.8%. Lastly, Adani Ports dropped by a little over 1%.

However, in the last few minutes of the closing session, Adani Enterprises and Adani Ports escaped bears to end with an upside over 0.6% and 2%. Other stocks ended in red.

Adani Ports escaped bears and recovered losses after the company announced its plan to issue Listed, Rated, Redeemable, NonConvertible Debentures on private placement. The issue amount is not exceeding Rs 5,000 crore.

The majority of Adani stocks are still far away from reaching the pre-Hindenburg report, however, last month huge improvement was recorded in them.

In a month, the Group's flagship arms Adani Enterprises and Adani Power surged by more than 29% each, while Adani Ports soared by 31%, and Adani Wilmar zoomed by 23%. Under the energy segment, Adani Energy and Adani Green shares climbed by over 50% each. But it would be Adani Total Gas that has outperformed not just its sibling stocks but also the broader market by skyrocketing nearly 86%.

However, due to a sharp rise in Adani shares over the last month, expert believes that these stocks have entered into a profit-booking mode. Experts have advised to still be cautious when investing in Adani shares.

Why Adani Shares Are Falling?

Manish Chowdhury, Head of Research, StoxBox said, Adani Group stocks rallied recently on the back of 'clean chit' from a US agency and increasing hopes of a favourable decision by the Supreme Court.

He added, "Our sense is that today's fall in Adani Group shares can be attributed to some profit booking at higher levels."

"We still advise investors to be wary of the Group stocks as we expect heightened volatility due to news flows surrounding the Supreme Court decision," Chowdhury lastly added.

Adani Latest Development:

The port-to-energy empire on December 12th released its half-yearly ESG compendium, showing significant progress in its decarbonization pathway and its ambition to support the global net zero journey.

Adani is at the forefront of India's green energy transition.

That being said, the conglomerate has set a target to become net zero by 2050 or earlier for five of its portfolio companies - Adani Green Energy, Adani Energy Solutions, Adani Ports & SEZ, ACC and Ambuja Cements.

In its statement, Adani said that the roadmap to the net zero transition will require last-mile green hydrogen solutions. To make green hydrogen adoption feasible, Adani's track record in large-scale renewables and fully integrated manufacturing with end-to-end EPC capability - all in one single location - uniquely positions it to lower costs.

These portfolio companies together will invest a massive $100 billion over the the next decade towards achieving energy transition.

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