Adani enterprises: Adani Group Stocks Plunge 18%, Erasing Rs 2.3 Lakh Cr in Market Cap
The Adani Group of Stocks declined to 18% today and washout of Market Cap Rs.2.3 Lakh cr from the market. The Current ruling Party BJP supported Adani Group less leading in the Election Poll counting makes Adani Group stocks falling in the market today. Adani Group of Stocks have EBITA 40% YoY and Net profit Rs.66000 cr. Net Debt is Rs.2.2Lakh Cr so far. Adani Goal is $90 Billion Capital expenditure in the next decade for development projects.
ADANI ENTERPRISES Market price is moving in Ascending channel and market has fallen from the higher high area of the channel
On June 4, Adani Group stocks plunged up to 18 percent, marking a sharp decline after experiencing substantial gains in the previous trading sessions. This sudden drop was driven by profit-booking and the unwinding of speculative positions, leading to a significant erosion of the group’s market capitalization by over Rs 2.3 lakh crore.
Previously, the conglomerate’s stocks had gained, adding Rs 1.4 lakh crore in value and bringing the total market capitalization of its listed entities to nearly Rs 20 lakh crore. However, in morning trading, Adani Total Gas emerged as the top loser, falling nearly 18 percent. Other notable declines included Adani Energy Solutions (12 percent), Adani Power (over 10 percent), Adani Green Energy (7 percent), and Adani Enterprises (7 percent).
Adani Ports and SEZ dropped by 8 percent, Adani Wilmar by 8.5 percent, Ambuja Cement by 9.6 percent, ACC by 9 percent, and NDTV by 12 percent.
Adani Group stocks had previously been on a strong upward trajectory following robust earnings for the fiscal year ending March 2024, with the group’s EBITDA surging by 40 percent year-over-year to Rs 66,000 crore.
The group’s market capitalization was initially hit by the Hindenburg report in late FY23. Throughout FY24, Adani Group focused on reducing debt and decreasing the founders’ share pledges. Total group EBITDA grew 40 percent year-over-year in FY24, with a five-year compound annual growth rate (CAGR) of 27 percent. The group raised fresh funds through equity, debt, and strategic investors, with promoters increasing their stake in group companies, leading to a rebound in market capitalization.
“The group is back on an expansion spree, eyeing $90 billion in capital expenditures over the next decade. In the report, we discuss the group’s FY24 performance and future prospects,” Jefferies India noted in its analysis.
Other group companies saw EBITDA growth ranging from 16 to 33 percent, except for Adani Wilmar, which experienced a decline. The group’s net debt, including debt related to the acquisition of the cement business, remained steady at Rs 2.2 lakh crore in FY24 compared to Rs 2.3 lakh crore in the previous year.
There was a notable improvement in the net debt/EBITDA ratio, decreasing to 3.3x in FY24 from approximately 5x year-over-year. Adani Ports and Adani Power observed a reduction in net debt during FY24, while Adani Enterprises and Adani Green experienced increased leverage due to new capital expenditure projects undertaken by these companies.
Nifty 50: Nifty Drops 500+ Points Amid Election Counting, Traders Seek Clarity
Today Election counting process happening in the India, Nifty 50 Benchmark index fell down by 500 points due to less leading of current BJP party versus Forecasted expectations. Sensex were down by 1975.30 points or 2.58% today.
Nifty Market price is moving in Ascending channel and market has reached higher low area of the channel
On June 4, benchmark indices sharply fell and struggled to regain momentum amid the election results. The NSE Nifty 50 plummeted by 500 points, while the Sensex dropped by as much as 2000 points. At 10:37 am, the Sensex was down by 1,975.30 points, or 2.58 percent, at 74,493.48, and the Nifty was down by 584.90 points at 22,679.00. The market breadth was overwhelmingly negative, with about 614 shares advancing, 2575 shares falling, and 87 shares unchanged.
The long-short ratio was 28:72, indicating a bearish market sentiment. The India VIX, which measures market volatility, stood at 20.94.
In the early trading hours, heightened volatility was observed as markets reacted sharply to the unfolding election results. The initial results showed the NDA leading with narrower margins than predicted by exit polls, causing uncertainty and contributing to the market’s decline.
HAL: Defence Stocks Slide Up to 9% on Profit Booking; Bharat Dynamics, HAL, Mazagon Dock Hit Hard
Today Election Poll results is going in India, So BJP Led Defence stocks like HAL, Bharat Dynamics, BEL, Mazagaon Dock, Cochin Shipyard shares are all fell by 9% in the market. Modi 3.0 assurance is Road, water, defense, Railways,Digital infrastructure and Green Technologies.
HAL Market price is moving in Ascending trend line and market has reached higher low area of the pattern
On June 4, shares of defense-related companies saw a significant decline of up to 9 percent in the opening trade as investors opted to secure partial profits following a period of bullish momentum in these stocks.
Under the Modi government, defense stocks have garnered considerable attention, reaching new highs fueled by the government’s emphasis on indigenizing defense manufacturing as part of the Atmanirbhar Bharat initiative.
Many defense stocks, including Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Mazagon Dock Shipbuilders, and Cochin Shipyard, have witnessed substantial returns, doubling in value over the past year. With investors sitting on substantial profits, analysts had anticipated profit booking to occur, particularly on the day of the general elections.
Hindustan Aeronautics shares were the hardest hit within the defense sector, trading over 7 percent lower on the BSE. Following closely were shares of Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Mazagon Dock Shipbuilders, and Cochin Shipyard, each experiencing around a 6 percent decline.
Among these, Hindustan Aeronautics, Bharat Dynamics, and Bharat Electronics had surged close to 10 percent and reached their all-time highs in the previous session after exit polls predicted a return of the BJP-led NDA, suggesting policy continuity under the incumbent government.
Brokerages also anticipate the defense sector to be one of the primary beneficiaries of the BJP’s return to power. “The focus of Modi 3.0 is likely to continue on developing the country’s public infrastructure, such as roads, water, metro, railways, defense, digital infrastructure, and green technologies,” noted Axis Securities in its report.
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