NEW DELHI: Adani stocks continued to remain under pressure even after the Group and the National Securities and Depository Ltd (NSDL) clarified that the three Foreign Portfolio Investment (FPI) accounts which have significant stake in four Gautam Adani-led firms remain active.
On Tuesday, the shares of Adani Transmission (ATL), Adani Power (APL) and Adani Total Gas (ATGL) closed at the five per cent lower circuit while Adani Ports and Special Economic Zones (APSEZ), which hit an intraday high of Rs 802.20, settled at Rs 757.20, down 1.5 per cent from the previous day closing on BSE. ATL ended Tuesday trading session at Rs 1441.40, ATGL at Rs 1467.35 and APL at Rs 133.90 on BSE.
Flagship company Adani Enterprises (AEL) and Adani Green Energy (AGEL), however, were the only two group stocks that ended in green. While AEL closed 1.6 per cent higher at Rs 1,525.80, AGEL ended the day at Rs 1208.75, up 2.8 per cent.
According to an analyst at a leading brokerage firm, there is still some amount of confusion among retail investors on the status of three Mauritius based Investment accounts. "It is a known fact that Mauritius is a tax haven and firms operating from there lack transparency. That said, Adani stocks are still overvalued and this controversy might have triggered a correction," the analyst said.
Global research firm Citi, however, maintained a buy rating on APSEZ, with a target of Rs 1,000 per share. Citi said that irrespective of the news reports, the business logic behind the company is solid and it doesn’t see why the its activities will be affected. It added that the company is well-positioned to grow its already high market share.
Negative news flow around Adani Ports' Group companies is a sentiment dampener but is less likely to have any major impact on the companies' business prospects, said the brokerage. Shares of Adani Enterprises had crashed 25 per cent on June 14 following reports of NSDL freezing demat accounts of three FPIs, eroding India’s second richest person Gautam Adani’s wealth by USD 4-5 billion.