Adani Enterprises shares crash 10% to slip below Rs 2,200; group's other stocks down too; here's what tech charts hint

Shares of Adani Enterprises Ltd came under intense selling pressure in Friday's trade, continuing their fall for the third straight session. The stock today fell 9.73 per cent to hit a day low of Rs 2,162.85 over its previous close of Rs 2,395.90. Today's sharp weakness in the share price came after a news report by Bloomberg suggested that US authorities were looking into representations that Adani Group made to American investors following short seller Hindenburg Research's scathing report.

The US Attorney's Office in Brooklyn, New York, has sent inquiries in recent months to investors with large holdings in Adani Group, focused on what the Indian ports-to-power giant told them, the report stated. The US Securities and Exchange Commission (SEC) also has a similar probe underway, it further mentioned.

The stock has witnessed major ups and downs after the Hindenburg setback. In January this year, US-based Hindenburg Research released a report alleging stock manipulation and accounting fraud by the Gautam Adani-led conglomerate. Adani, however, denied all the claims. The stocks then staged a recovery in March when US boutique investment firm GQG Partners announced a cumulative investment of Rs 15,446 crore in four Adani firms.

Indian market regulator Sebi in May had "drawn a blank" in investigations into suspected violations in overseas investments in the Adani group and a Supreme Court-appointed panel said its ongoing pursuit of the case could be a "journey without a destination".

On the technical front, analysts largely remained mixed on the counter.

Vaibhav Kaushik, Research Analyst at GCL Broking, said, "Adani Enterprises is under consolidation between Rs 2,300 and Rs 2,600. Either side breakout can give a movement of 20 per cent. So, right now keep it on the radar until there is no break out."

Gaurav Bissa, VP, InCred Equities said, "Adani Enterprises has witnessed a strong recovery from Rs 1,000 levels. Amid the intense volatility, the stock managed to cross the previous swing high after a brief period of consolidation. The outlook remains positive on the stock till it holds above Rs 2,200 levels with a possibility of an upside towards Rs 2,800."

The counter's 14-day relative strength index (RSI) came at 38.96. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 168.32. It has a price-to-book (P/B) value of 19.60.

The scrip has a one-year beta of 2.05, indicating high volatility on the counter.

Separately, the company, in an exchange filing, said, "AdaniConneX achieved financial closure through its maiden construction facility by entering into Financing Framework, raising $213 million for its under-construction data center asset portfolio. The tied-up facility will finance two data centers with an aggregate capacity of 67 MW that includes 'Chennai 1' campus with Phase 1 of 17 MW and Noida campus of 50 MW." AdaniConneX is a 50:50 JV between Adani Enterprises and EdgeConneX.

Apart from Adani's flagship firm, group's other nine listed companies also declined today with Adani Ports and Adani Power down over 3 per cent, each.

Meanwhile, Indian equity benchmarks traded lower in early deals today, taking cues from the Asian markets. The domestic indices were dragged by weakness across all sectors due to profit-booking at record levels.

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