Shares of Adani Ports and Special Economic Zone saw profit-booking in the final hours of trading as investors booked profit from the peak of Budget rally. The selloff started after a Bloomberg report stated that Credit Suisse’s private bank has stopped accepting bonds of Gautam Adani’s group of companies as collateral for margin loans to its private banking clients.
Read More: Budget 2023: New Tax Regime Will Now Be The Default Tax Regime, Announces FM Sitharaman
The report further said that Swiss lender’s private banking arm has assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai Ltd. It had previously offered a lending value of about 75% for the Adani Ports notes, the report added.
Adani Ports and Special Economic Zone share touched a fresh 52 week low of Rs 459.60, falling 25% against the previous close of Rs 612.80 on BSE. Earlier, the stock had risen 2.81% intraday to Rs 630. Hence, the stock has crashed Rs 170 or 27% from day’s high.
However, the stock opened higher at Rs 630. The share is trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Adani Ports share has fallen 33.69 per cent in one year and crashed 29 per cent since the beginning of this year.
Read More: Budget 2023: Good News For Bank Customers, KYC Process To Be Simplified
Market cap of the firm fell to Rs 99, 279 crore on BSE. Total 20.54 lakh shares of the firm changed hands amounting to a turnover of Rs 116.93 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 459.60 on February 1, 2023.
Abhijeet from Tips2trade said, “Adani Ports is extremely oversold and hence shorting at current levels could be very dangerous. However, the stock price continues to stay bearish. Next support is at Rs 482. A daily close below this level could lead to Rs 412. Rs 625 now becomes a strong resistance.”
In late January, a report by Hindenburg Research alleged accounting frauds, stock manipulations and money laundering by the Adani Group.
The Group called Hindenburg report as maliciously mischievous and unresearched, which, it said, adversely affected the Adani Group, its shareholders and investors. But Billionaire investor William Ackman in a tweet said he found short-seller Hindenburg Research’s report on Adani Group “highly credible and extremely well researched.”
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.
