Adani Group stocks to be in focus today. Here’s why

By India Today Business DeskShares of Adani Group’s listed companies are likely to be in focus as benchmark stock indices have increased the upper circuit limit of four listed entities belonging to the power-to-ports conglomerate.

The Bombay Stock Exchange (BSE) revised the circuit limit for Adani Transmission, Adani Green Energy, Adani Wilmar and Adani Power on Tuesday. While the circuit limits for the first three companies have been raised to 10 per cent from 5 per cent, Adani Power will have a new circuit limit of 20 per cent.

The National Stock Exchange (NSE) has raised the circuit limit for these companies as well.

The new circuit limits will be applicable from today, according to the notifications issued by the leading stock exchanges.

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Adani Group stocks in focus

This is a positive development for the four listed companies of billionaire Gautam Adani’s conglomerate, as it paves the way for higher trade participation. In fact, the positive development could provide a boost to all the 10 listed companies of the conglomerate.

It may be noted that on Tuesday, shares of Adani Transmission and Adani Wilmar ended 1 per cent lower, while Adani Green Energy and Adani Power ended 0.4 per cent and 1.4 per cent higher, respectively.

The move was part of a periodic review and revision conducted by the exchanges. The change in circuit limit is part of the review. It may be noted that exchanges set circuit limits to prevent large movements of a stock’s price over a short duration.

The circuits for Adani Group companies were reduced drastically following US short-seller Hindenburg Research’s scathing report against the conglomerate.

While the Adani Group denied allegations levelled in the report, shares of all its listed companies fell sharply and led to a forced revision in their circuit prices.

But as Adani Group stocks have regained significant momentum and stability over the past few months, the bourses have taken a decision to boost their circuits, offering an increased scope of investor participation.