NRI effect! Adani stocks rally up to 10% as bull party extends to 5th day

Shares belonging to billionaire Gautam Adani's sprawling empire rallied for a fifth straight day today after NRI investor Rajiv Jain's Rs 15,000 crore bet helped bulls forget Hindenburg's allegations.

Adani's flagship company, Adani Enterprises, was the top performer in the pack as the Nifty stock rose 10% to an intraday high of Rs 2,067.25. Of Adani's 10 stocks, 5 of them - NDTV, Adani Green, Adani Wilmar, Adani Total Gas, Adani Power and Adani Transmission - were in the range limit of 5% higher.

Adani's remaining 3 shares were also in the green zone. The biggest boost to crisis-hit Adani shares came from a Rs 15,446 crore investment in four group companies by Jain's $92 billion fund GQG Partners. As a result of today's rally, the market capitalization of Adani shares rose by Rs 50,000 crore to cross the Rs 9 lakh crore mark today. GQG bought 3.4% of Adani Enterprises at Rs 1,410.86 per share, 4.1% of Adani Ports at Rs 596.2 per share, 2.5% of Adani Transmission at Rs 504.6 per share and 3.5% of Adani Green Energy at Rs.668.4. share.

Analysts say that the price at which FIIs bought these shares has now become a day for the counters in the near future. Jain described the airport, port and power assets owned by Adani as "fantastic", "irreplaceable" and available at a good price. His team had closely watched Adani for five years, but valuations were in "no man's land" and now the stock's rise made the investment opportunity attractive.

Jain said his bet on Adani stock is a multi-year investment as he sees at least 20 years of earnings visibility in the Ahmedabad-based conglomerate. "Recent events have made it very attractive in general and the other aspect is that the group itself is better positioned from a bottom-up fundamental perspective," Jain said, adding that the classic PE type of valuation is not relevant for Adani. companies at this stage.

Adani shares have lost more than half their combined market value since the Hindenburg report was published in late January. To probe the matter, the Supreme Court constituted a commission of inquiry and also asked Sebi to complete the ongoing investigation within the next two months.