Adani shares outperformed Nifty in last seven days
New Delhi: In the last seven days, Adani Group of Stocks has outperformed Nifty 50. Vaibhav Vidwani, research analyst at Bonanza Portfolio, said group companies have experienced gains ranging between 16 per cent and 63 per cent.
He said Adani Total Gas – a stock that has more than doubled investors’ wealth – has increased in value by more than 60 per cent in the last seven days.
Additionally, the stock has declined by 70.5 per cent from its all-time high, and it is currently trading at a discount of 73.65 per cent to its 52-week high, he said.
He said Adani Group’s two enterprises Adani Power and Adani Ports are close to 52-week highs during this period.
Nifty closed on a positive note, while most of the sectoral indices closed in the green. Nifty IT and Nifty Energy were among the better performing sectors, rising 1.67 per cent and 1.55 per cent respectively.
On the Nifty, Wipro, LTIMindtree, ITC, L&T and TC were among the top gainers, while losers included Adani Enterprises, Eicher Motors, Cipla, NTPC and UltraTech Cement.
Vinod Nair, head of research, Geojit Financial Services, said that after the state elections, there is optimism in the market, which confirms the continuity of the policy and meets the expectations of investors.
He said decline in inflation and decline in yields in both the US and Indian markets have led to strong FII inflows. Indian markets rose after China’s credit rating downgrade and easing of geopolitical tensions following falling oil prices.
He said reduced risks of a US recession and a strong bounce in IT on expectations of strong demand in the summer have boosted the power sector.
Despite the promising outlook, domestic premium valuation concerns could lead to short-term profit-taking, he said.
He said prolonged El Nino risks, declining reservoir levels and lower sowing may force the RBI to deeply upgrade H2FY24 growth and reduce future inflation projections.
