Hindenburg effect fades: Adani Ports shares zoom 10% in early trade

Shares of Adani Ports and Special Economic Zone rose up to 10% today amid a crash in the Adani Group stocks for the third straight session today. The fall in Adani Group stocks comes after a report by Hindenburg Research alleged accounting frauds, stock manipulations and money laundering by the Adani Group. Adani Ports shares bucked the trend in early trade today after a media report said Singapore investor, Temasek Holdings (Private) Limited, remains invested in the Adani Group firm amid negative sentiments arising from the US-based forensics research institution’s latest report.

Adani Ports stock gained 10% to Rs 658.45 in early trade against the previous close of Rs 598.60. The stock has risen after six sessions of losses. The large cap stock opened higher at Rs 608.95 on BSE. Adani Ports shares are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Adani Ports shares have lost 12.83 per cent in one year and fallen 24.34 per cent since the beginning of this year.

Market cap of the firm rose to Rs 1.32 lakh crore on BSE. Total 13.21 lakh shares of the firm changed hands amounting to a turnover of Rs 83.28 crore on BSE. The stock hit a 52-week high of Rs 987.90 on September 20, 2022 and a 52 week low of Rs 536.85 on January 27, 2023.

Before today’s rally, Adani Ports stock had plunged 21.32% in the last two trading sessions due to negative sentiment arising out of Hindenburg Research’s report on the Group’s stocks.

 A report by The Strait Times said on Monday that Temasek "remains invested in Adani Ports, as per their latest public shareholding disclosures", citing a spokesman for the 49-year-old state-owned investor which has $496.59 billion in assets under management as of December 2022. Temasek, through its arm Camas Investments, owns over 1.2 per cent stake in Adani Ports, the report by the Singapore based broadsheet said. The stake was purchased in 2018 for around SGD 147 million. The spokesman for Temasek also said the group does not comment on market speculation.

 On October 24, Hindenburg Research unveiled a report just before the FPO of Adani Enterprises alleging accounting frauds, stock manipulations and money laundering, which led to negative sentiment around the Adani Group stocks in the last three sessions. Adani Group called Hindenburg's report as maliciously mischievous and unresearched, which, it said, adversely affected the Adani Group, its shareholders and investors.

Adani Group had said that the timing of the Hindenburg report’s publication clearly betrays a brazen, mala fide intention to undermine the group’s reputation with the principal objective of damaging the follow-on public offering from Adani Enterprises, which is the biggest FPO ever in India.

Meanwhile, Sensex was trading 102 points or 0.17 per cent lower at 59,228 and Nifty lost 34 points to 17,569 at 10:50 am today.

 
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