Adani unfazed, stock spikes despite negative media reports
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New Delhi: Despite allegations against the Adani Group revealed by two foreign media organizations, The Financial Times and the George Soros-backed OCCRP, the company's stocks spiked, indicating that people have little trust in these media reports and are ignoring them. Most recently, Adani Group’s market capitalisation increased by over Rs 11,000 crore on Wednesday, bringing its total market capitalisation to $200 billion (more than Rs 16.9 lakh crore).
The Adani Group stock, Adani Power, closed at an all-time high gaining 2.1 per cent from the previous day’s close. According to market experts, the reports had no impact on Adani Group stocks as markets "weigh the quantum of the situation before giving their judgement".
This is the third time the two foreign media organisations joined hands to publish negative reports on the Adani Group, making investors believe that the attacks are deliberate attempts to influence the stock prices. The latest report, again, is timed in between the ongoing general elections, once again making the timing questionable.
Further, the outdatedness of the transactions mentioned in the FT and OCCRP report are perceived as a no-risk event for the stocks. The latest reports by the two Western media groups accuse the Adani Group of selling low-grade imported coal in India at the price of high-value coal 10 years ago, and part of the allegation was during the UPA government era.
Investors are seeing strong value in Adani Group stocks. In the past one year, the group’s market capitalisation has increased by 57 per cent and now stands at $200 billion.
Source: IANS
