Adani stocks rally up to 13% after India-US trade deal; time to book profits or hold them?

Adani Group stocks: Shares of Adani Group companies continued to extend their gains on Tuesday as the listed entities of Gautam Adani-led conglomerate soared as much as 13 per cent in the early trade, led by the index constituents. Bluechip firms of Adani Group- Adani Enterprises Ltd and Adani Ports & Special Economic Zone Ltd will announce their quarterly results today.

Adani Group companies emerged as the biggest beneficiaries of the India-US trade deal, which pushed the benchmark indices rise by 5 per cent in the initial uptick. Overseas brokerage firm Jefferies believes that Adani Group firms have a significant exposure to the US across various sectors.

Adani Enterprises, the flagship company of the Adan Group jumped more than 11.40 per cent to Rs 2,222.35 on Tuesday, commanding a total market capitalization of Rs 2.6 lakh crore. The company management will interact with the investors and analysts on February 9-10 in the USA at Adani Annual Conference, US, said the company in an exchange filing.

However, Adani Green Energy Ltd led the gainers as the renewable energy entity jumped 12.87 per cent to Rs 951.35 in the session, with its total market capitalization of 1.55 lakh crore. The stock had settled at Rs 842.80 on Monday. The company gave its clarification over media reports around Adani Group mulling to raise funds from Japanese entities.

Kranthi Bathini, Director of Equity Strategy at Wealthmills Securities believes that the India US trade deal bodes well for the Adani Group companies but fresh buying is not recommended. "We maintain our view that Adani Group stocks are for high risk investors and one can continue to hold these counters from a medium to long-term view."

Adani Ports jumped 8.35 per cent to Rs 1,519.80 with a total market capitalization of Rs 3.5 lakh crore.  Antique Stock Broking is expecting its consolidated revenue is forecasted to grow by 20.4 per cent YoY, led 7.5 per cent YoY growth in domestic port cargo, 52 per cent growth in logistics segment revenue, and material increase in marine segment revenue.

Adani Energy Solutions Ltd surged 10 per cent to Rs 972.55, with a total market capitalization close 1.15 lakh crore, while Adani Power Ltd jumped 7.75 per cent to Rs 145 with a total market capitalization 2.8 lakh crore. Adani Total Gas Ltd also gained 7.55 per cent to Rs 558.10 with a total valuations above Rs 60,000 crore.

Mahesh Ojha, Vice President Research & Business Development at Kantilal Chhaganlal Securities said that the trade deal is notionally positive for the Adani Group stock but fresh buying is not recommended for now. "Infact existing investors, who bought these stocks at the lower levels amid volatility, may book partial profits," he suggested.

Among the acquired entities, Ambuja Cements Ltd soared 5.85 per cent to Rs 540, while ACC Ltd gained nearly 3 per cent to Rs 1682.20. Sanghi Industries jumped 4.6 per cent to Rs 63, while shares of New Delhi Television Ltd (NDTV) rose more than 6 per cent to Rs 85.91 in the early trade.