With several of Adani group stocks tanking and hitting the lower circuit on National Stock Exchange (NSE) recently was coupled with it’s skyrocketing share prices in the stock market. The scenario which led to the behaviour of the stocks is explained below .
The Adani Power share price rallied up quickly due to mainly the following two reasons -Significant investments in green energy -Receiving (partial) payments by the Rajasthan and Maharashtra governments where due to the company -Adani Power cancelled their delisting, which has benefitted to the rise
Adani Power share price increased 70 per cent in the last four trade sessions. The Adani group stock closed at ₹97.35 at NSE on 3rd June 2021, which soon increased to ₹166.90 which gave the shareholder an increase of over 70 per cent return
In the matter of rising petrol and diesel prices, people are making a shift towards electric vehicles and investments in green energy have gained investors this investing behavior has caused the long term investor to have their value increased significantly.
The Adani Group share price fell significantly on 13th June 2021 The sudden drop in the share prices was set off by the reports that National Securities Depository Limited (NSDL) had frozen the accounts of three foreign funds that hold stock in Adani companies which are worth about $6 billion.
The information regarding the investors and halt have not been explicitly revealed , there is insufficient disclosure of information regarding beneficial ownership.
A circular was released by SEBI where it notified all overseas investors to furnish details of their end-beneficiaries and sources of funds.
The FPI’s accounts which where frozen holds nearly 75 per cent in Adani Transmission, Adani Power and Adani Enterprises
In the BSE The company’s market cap fell to Rs.1.4 lakh crore. The stock same stock earlier has gained over 700 per in the past year, at least 200 per cent since the beginning of this year. Along with this. It may be noted that Adani Enterprises Limited shares declined 25 per cent to hit an intraday low of Rs.1,201.10, which is a fall of over Rs.400 from last week’s close of Rs.1,601.45
In the end , Adani remain long-term investors. As they have remained inter-generational investors where they have been invested in for 30, 50 years as a sustainable investment option.
The following inconsistencies of the stock can be pointed to a fundamental feature which is the inefficiency of The Prevention of Money Laundering Act (PMLA) rules.