Except Adani Total Gas, All Other Adani Stocks Fall On December 8; What's Driving The Stocks?

Adani Group's stocks saw a decline in the later hours of trade on Friday, December 8 after recent highs. Despite the market's upward trend, the conglomerate's flagship, Adani Enterprises, slipped nearly 2%, contributing to a broader decline in the group's stocks.

As of 2 pm, NDTV led the losses, by almost 6%. However, compared to its 52-week low, the media company's shares have climbed 61.5%. Adani Energy Solutions and Adani Green Energy also witnessed declines of 4.12% and 4.8%, respectively, despite the latter securing a substantial $1.36 billion in funding through a senior debt facility earlier this month.

Adani Ports and SEZ experienced a 1.9% dip, currently trading at Rs 1,019 per share. Despite the fall, the stock has risen threefold from its low of Rs 392. The recent surge followed a 'buy' call from global brokerage Citi, which also raised the target to Rs 1,213 per share.

Cement players ACC and Ambuja Cement faced declines of up to 2%, and Adani Wilmar and Adani Power saw drops of almost 3% each. The lone outperformer in the group was Adani Total Gas, which managed to eke out minor gains of 0.1% on the BSE.

This downturn comes after a series of gains in Adani Group counters, sparked by the Supreme Court's support in late November for the Securities and Exchange Board of India's probe into the Adani-Hindenburg matter. The momentum received an additional boost when a recent report stated that the US government did not find Hindenburg Research's allegations of corporate fraud against the conglomerate relevant.

However, the real boost came from the Adani Group's plan to invest Rs 7 lakh crore in capital expenditure over the next decade. Adani Green Energy's securing of a $1.36 billion loan from a consortium of eight international banks also contributed to the positive sentiment.

The journey of Adani Group stocks has been tumultuous since January 23, when the group's market cap stood at over Rs 19 lakh crore. Following the Hindenburg Research report, the market capitalization plummeted to Rs 6.8 lakh crore, triggering a rout in company stocks. While there has been a recovery since then, the market cap currently hovers around Rs 15 lakh crore, still short of the pre-January 24, 2023, levels.

Despite the recent dips, industry experts believe that the group's investments, government support, and debt financing may pave the way for a more stable and robust performance in the near future.