Most Adani stocks have been hitting lower circuits every day and 5 out of 10 stocks are trading at their 52-week low levels.
But as stocks in the pack showed some recovery in the second half of Friday’s session after France’s TotalEnergies backed billionaire Gautam Adani in a statement, investors are wondering whether there is more pain ahead or recovery is in the offing next week.
Sudip Bandyopadhyay of
said some of the Adani Group stocks were looking oversold and some amount of recovery was probably warranted.
“To say that the issues are behind us probably will be little too early. We will have to wait and watch. Our advice to investors will be to be careful. Intraday trades are fine but you should wait before taking a fundamental position unless you are looking at
, Ambuja or maybe ,” he said.
After crashing 35% in the morning hours,
pulled off a surprise bounce back after rating agencies showed confidence on Adani’s capability of repaying debt.
“We believe that and Adani Ports are worth considering at this point of time from a medium to long-term perspective,” Swapnil Shah, Director of Research at Stoxbox, said.PMS fund manager Basant Maheshwari said there is more trouble ahead in these stocks as it has become a political issue now.
For the second day in a row on Friday, proceedings in both Houses of Parliament were disrupted as the Opposition demanded a joint parliamentary committee (JPC) probe against the Adani Group.
Later on in the evening hours, global ratings agency S&P Global Ratings downgraded the outlook on Adani Ports and Special Economic Zone and Adani Electricity to “negative” from “stable”, citing that the risks and concerns triggered by Hindenburg Research report have not been factored into its ratings.
“There is a risk that investor concerns about the group’s governance and disclosures are larger than we have currently factored into our ratings, or that new investigations and negative market sentiment may lead to increased cost of capital and reduce funding access for rated entities,” S&P said in a statement.
Fitch Ratings had, however, said there is no immediate impact on the ratings of Adani entities and their securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
