Adani Group’s 2 stocks to be moved to ASM stage-1 category from Monday

Adani Group’s two stocks will be put under the first stage of the long-term additional surveillance measures (ASM) from Monday (20 March 2023), according to stock exchanges.

The BSE and NSE in their circulars said the two securities will be moved from the long-term ASM framework Stage II to Stage I from March 20.

Last week, both NDTV and Adani Green Energy were put under the long-term ASM framework Stage II from Stage I.

Yesterday, the ports-to-power conglomerate’s three stocks were removed from the National Stock exchange’s short-term ASM framework. These included Adani Power, Adani Wilmar, and Adani Enterprises, respectively.

Last month, Adani Ports and SEZ, and Ambuja Cements were also placed under the short-term additional surveillance measure to control stocks’ volatility.

ASM is an initiative by Sebi and exchanges wherein the securities are moved to the either short-term or long-term framework to protect the interest of investors. Adani Group’s stock has been put under the ASM framework due to high volatility post the HIndenburg’s report.

In the short-term ASM, there are two stages. Stocks are retained in each stage as applicable for a minimum period of 5/15 trading sessions and are eligible for review from the 6th/16th trading day onwards.

The securities are further monitored and moved in trade-to-trade (T2T Segment) and 100% of traded value will get blocked as margins, which means that no intraday leverage is given.

The parameters for shortlisting securities under the ASM framework include high-low variation, client concentration, number of price band hits, close-to-close price variation, and price earning ratio.

On Friday, seven of Adani Group’s stocks were settled in green while four closed in the red.

The shares of Adani Transmission spurted 5% to settle at 1024.85, and Adani Wilmar climbed 1.52% to close at 427.35 on the BSE.

The market valuation of Adani transmission increased to 1,14,321.27 crore, and that of Adani Transmission jumped to 55,541.77 crore.

Adani Power climbed 1.20% to close at 199.95, and Ambuja Cements ended on a flat note at 378.25 each share.

Also, the shares of flagship firm Adani Enterprises Ltd (AEL) gained 1.88% to settle at 1,877.15 apiece on the bourse.

Besides, shares of Adani Green Energy rose by 4.99% to close at 816.80. However, NDTV declined 1.63% to end at 205.70.

The 30-share BSE Sensex gained 355.06 points or 0.62% higher to settle at 57,989.90 points. The broader NSE Nifty rose 0.67% to end at 17,100.

After taking a beating on the bourses, following the report by US-based short seller Hindenburg Research, the group stocks had recovered. However, amid sluggish broader market trends, the group’s stocks have declined in the last few trading sessions.

The report had made a litany of allegations, including fraudulent transactions and share-price manipulation, against it.

The group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

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