Adani Wilmar shares halt 8-day losing run, climb 5% today amid heavy volumes

Shares of Adani Wilmar rose 5 per cent in Tuesday's trade, pausing their losing run of eight straight sessions. The stock climbed 4.99 per cent to hit a day high of Rs 399.40 over its previous close of Rs 380.40. At today's high price of Rs 399.40, the scrip has lost 30.32 per cent in eight days. That said, the counter has declined 54.53 per cent from its 52-week high of Rs 878.35, hit on April 28 last year.

Around 28 lakh shares changed hands on BSE today, which was more than six times compared to Adani Wilmar's two-week average volume of 4.14 lakh shares. Turnover on the counter came at Rs 108.85 crore, commanding a market capitalisation (m-cap) of Rs 51,909.16 crore. There were 3,67,788 buy orders today against nil sell orders.

Nine out of 10 listed Adani Group stocks rebounded today in afternoon trade, climbing up to 25 per cent.

The stocks had taken a sharp beating after US-based short seller Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.

Om Mehra, Equity Research Analyst at Choice Broking, said, Adani promoters' decision to prepay $1.1 billion to release pledged shares lifted investor sentiment.

Promoters of Adani Group have posted the amounts to prepay $1.1 billion of share-backed facility of its maturity of September 2024.

"With the repayment, the following shares shall be released: Adani Green Energy: 27.56 million shares, representing 3 per cent of promoters' holding; Adani Ports: 168.27 million shares, representing 12 per cent of promoters' holding; and Adani Transmission: 11.77 million shares, representing 1.4 per cent of promoters' holding," the company stated.

In addition, JPMorgan's statement on Adani Group saying they are still eligible for inclusion in its influential bond indices helped the stocks to recover.

The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 24.38. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 71.01.

Adani Wilmar has an average target price of Rs 850, Trendlyne data showed, suggesting a potential upside of 113.09 per cent.

Meanwhile, Indian equity benchmarks slipped in afternoon deals, dragged by automobile, consumer, pharma and energy stocks.

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