Shares of Adani Ports and Special Economic Zone (APSEZ) rose nearly 8 per cent in early trade on Tuesday, reversing losses in January triggered by a scary report from US short-seller Hindenburg Research.
While APSEZ shares could not make gains in early trade, it was still up over 2.2 per cent at around 1:30 pm. In the last few trading sessions, shares of the company along with other Adani group companies have also gained.
The market cap of APSEZ briefly touched Rs 1.67 lakh crore, which was around the level before the short-seller attack. The Relative Strength Index (RSI) of the stock stood at 71.3 and an RSI above 70 indicates that the stock is overbought.
Despite being volatile, analysts and brokerages are mostly passively bullish on Adani Group shares after a strong rally last week after a Supreme Court-appointed expert panel said it was not possible to conclude whether there were regulatory failures related to alleged price manipulation or No.
The panel further noted that there was evidence of creation of short positions in Adani Group shares before Hindenburg Research released its report in January. The short-seller had raised several governance concerns around Adani group companies, alleging improper use of tax havens and stock manipulation.
Adani Enterprises, the flagship company of the Gautam Adani-owned port-to-power group, was the top gainer on the Nifty 50 today as its shares surged over 15 per cent in early trade. It has gained about 45 per cent in the last three trading sessions.
Shares of all other Adani group companies also gained after the report of the court-appointed panel in the Adani-Hindenburg case. Seven core listed firms of Adani Group are in profit for the third consecutive day if the current trend holds till the end of today’s session.