Dalal street witnessed a change in the pessimistic investor sentiment on Friday. News of Rajiv Jain-led GQG Partners investing a whopping Rs 15,446 crore in Adani Group Companies sent all 10 Adani stocks on the rally on Friday. The US-based investing firm purchased a stake in 4 Adani Group companies.
Adani companies have been on a rebound rally over the week, slowly recovering their place as the investor’s pick in the stock market. Adani’s flagship company Adani Enterprises surged by 17%, Adani Ports rallied by 9.7% while the remaining 8 Adani stocks hit their respective 5% upper circuits on Friday before the week's closing.
The week’s trading was positive for Adani group with its companies showing gradual recovery over the week with a rally on Friday. Over the week, Adani Enterprises gained 43%, Adani Ports gained 20%, Adani Green Energy gained 21%, Adani Power gained 18%, Adani Wilmar gained 16.8%, Adani Total Gas gained 9.3%, Adani Transmission gained 9.9% in a much-awaited recovery by the group.
The rally in the Adani group shares was reciprocated by the PSU banks which were bleeding red over fears of exposure to the Adani Group. The Nifty PSU banks were up by over 5% on Friday. The broader markets also rallied with the Sensex gaining 900 points to close at 59,809 while the Nifty50 gained 1.57% in the biggest rally since November 11, 2022, as reported by Moneycontrol.
The market appeared to rally with vengeance on the positive shift of bullish traders. Friday’s rally added Rs 3.3 lakh crore to investor wealth.
The positive rally in the broader market and especially the Adani Group stocks was a breather to investors. The Adani Group stocks witnessed a bloodbath in the stock markets after the release of the Hindenburg report on January 24. Some of the Adani companies had lost over 50% of their market valuation after the release of the report.
The recovery in the Adani shares also brings good news for LIC, India’s largest insurance company which has invested about RS 30,000 crore in the Adani Group Companies. Like the PSU bank, the fear of LIC’s exposure had sent its stock plummeting to a low of Rs 567.75 from the Rs 600 mark.
Market pundits are positive about the week's performance of the Adani Stocks. Naveen Kulkarni said that the Adani group development will add to positive investor sentiment in the market and increase retail participation as reported by Moneycontrol.
© Vygr Media Private Limited 2023. All Rights Reserved.
