Adani Enterprises, Adani Power, Adani Green, Adani Energy: Adani Stocks rally up to 13% on India-US trade deal

Adani group stocks such Adani Enterprises Ltd, Adani Power Ltd, Adani Green Energy Ltd and Adani Energy Solutions Ltd surged up to 13 per cent in Tuesday's trade amid a broader market rally on Tuesday, following the announcement of India-US trade deal.

By 9.44 am, Adani group flagship Adani Enterprises had rallied 11.89 per cent to hit a high of Rs 2,232. Adani Power Ltd jumped 7.76 per cent to Rs 145. Adani Green Energy Ltd soared 12.87 per cent to Rs 951.35. Adani Energy Solutions Ltd climbed 10 per cent to Rs 972.55. Adani Ports and Special Economic Zone Ltd advanced 7.16 per cent to Rs 1,503.30. Adani Total Gas Ltd gained 6.36 per cent to Rs 551.85. Ambuja Cements and ACC gained 2 per cent each.

The rally in Adani stocks was seen amid a broader market rally as analysts said the revised US tariff on Indian goods at 18 per cent, down from 25 per cent earlier, along with the removal of the additional 25 per cent levy linked to Russian crude oil imports, should make India more competitive than its peers. They said the move could also support a recovery in the rupee and revive foreign equity inflows.

Dhiraj Relli, MD & CEO at HDFC Securities the United States reducing tariffs on Indian goods, effective immediately, will significantly enhance India’s competitive position in global markets. 

"At 18 per cent, India’s tariff rate is now lower than that of several major Asian trading partners, supporting growth in labour-intensive and export-oriented sectors such as textiles, gems and jewellery, and engineering goods," Relli said.

Relli said the agreement also removes the additional 25 per cent duty previously applied to India’s Russian crude oil purchases, bolstering bilateral economic cooperation and offering greater stability to both the rupee and domestic markets.

"We don’t rule out the Indian equities becoming the best performers in EM in the upcoming weeks. MSCI India (down 5.1 per cent) has underperformed EM (8.9 per cent) CYTD," said Garima Kapoor of Elara Securities.

EMkay Global said the development will cascade into a strong rally in equities. A reversal in the rupee is likely to trigger a wave of FPI buying, supported by multiple other factors, it said citing earnings momentum that is turning positive with FY27E Nifty EPS poised for 14 per cent YoY growth after two years of disappointment.

Emkay said market valuations have corrected to 5Y LTA levels, with deep corrections in SMIDs. "The reversal of the AI and metals trade brings India back into focus for overseas investors. We believe that there was significant money waiting on the sidelines, unwilling to catch the falling rupee knife," Emkay Global said.