Adani Group’s stock skyrocketed on Tuesday, January 14, 2025, with each of its ten listed shares posting multibag returns of up to 18%. Overall, Adani Group shares have been rising due to speculative activity surrounding the conglomerate’s plans to raise funds and a political development in the United States.
Top Performers of the Day
The key gainer in the pack was Adani Power, which shot up nearly 19% and reached ₹535 on the NSE. The rally of the stock was matched by its group companies, Adani Green Energy and Adani Energy Solutions, which increased more than 13%. While Adani Green Energy touched ₹1,012.80, Adani Energy Solutions reached ₹783. Other stocks within the group, including Adani Total Gas, Adani Enterprises, and NDTV, also saw impressive gains, with Adani Total Gas climbing by 12.8% to ₹708.80 and Adani Enterprises advancing 8.9% to ₹2,422.90.
The rally was not restricted to a few stocks; even Adani Ports, Ambuja Cement, and Sanghi Industries showed moderate increases of 4-5%, while Adani Wilmar, which had been under pressure following a recent offer for sale (OFS), managed a good 3% rebound.
Market analysts attribute this tremendous rally to a few factors. Much of the rise is due to market speculations that the Adani Group is likely to raise funds in the near future. “I believe investors are hoping for foreign fund flows, especially if former U.S. President Donald Trump returns to the White House,” said Head of Research at Lakshmishree Investment and Securities Anshul Jain. Trump’s policies, particularly in the sphere of international relations, are said to be favoring large conglomerates like Adani, which are easier to obtain funds from overseas markets.
Alongside this speculative hype, Adani Energy Solutions went up after the firm issued an encouraging business update for the third quarter of FY25. It posted 29.7% growth year-on-year in its transmission network. Adani Energy Solutions has also been bagging significant deals, like one worth ₹3,455 crore in the transmission project of Khavda and another for ₹25,000 crore in Rajasthan. The whole thing boosted positive sentiment regarding the stock.
Similarly, the Adani Wilmar’s reversal can be related to the sharp decline it experienced immediately after its promoter, Adani Commodities LLP, announced a massive share sale. The Adani Wilmar share price had crashed by around 19% in two days as the offer for sale was announced. But the stock firmed up on January 14 and rose by 3% as the market absorbed the news.
Market Sentiment and Volatility
The impressive rise in Adani Group shares, however, has warned analysts to proceed with caution. Mahesh M Ojha, AVP-Research at Hensex Securities, cautioned that the rise is fueled by speculation and market gossip. He stated that new investors should avoid investing until the Adani Group provides an official statement on its fundraising efforts. Investors who own Adani shares should maintain strict stop-loss levels to reduce risk and avoid potential losses.
The rally was also fueled by market sentiment. Investors had just witnessed a sharp sell-off, with benchmark indices reaching seven-month lows. Following that, investor sentiment improved, with many looking to capitalize on stocks that had recently experienced significant corrections. The improvement in overall market sentiment was boosting Adani Group’s stock price.
Despite the hype surrounding Adani Group stocks, the rally’s speculative nature cannot be discounted. Until the Adani Group confirms the fundraising plans, investors will have to rely on rumors and market speculation. That is, the rally could be short-lived or volatile if new developments or official statements contradict the market’s current optimism.
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