Crash in Adani's value attracts mutual funds towards 2 group stocks, here's why
The reason behind this demand is that the port giant and cement subsidiary, both have hard assets.
The stock market rout triggered by the Hindenburg Research report may have become a bloodbath for the Adani Group, dragging its market value below Rs 10 lakh crore. But a major slide in prices is also an opportunity for people to buy into stocks which had surged at an unreal pace in the past five years. Among them, mutual funds have been stocking up on shares of two specific Adani Group firms, Adani Ports and ACC.
Mutual funds have bagged Adani Port stocks worth Rs 444.10 crore and ACC stocks worth Rs 203.17 crore, as the controversy triggered a massive sell off by investors. The reason behind this demand is that the port giant and cement subsidiary, both have hard assets, which keep the possibility of a recovery alive. Mutual funds with ample amount of these stocks in their bouquet can benefit from a bounceback.
These two companies have also hit the green after the initial crash, while their peers Adani Green Energy, Adani Transmission and Adani Total gas have been hit the worst. Apart from making the most of Adani's prices bogged down by the Hindenburg storm, mutual funds kept buying into bluechip stocks for stability. Adani Ports and Ambuja Cements are also one of three group companies that NSE removed from an additional surveillance framework.
The duo also escaped downgrading by Moody's, which cut the outlook on Adani Green Energy, Adani Tramission Step-One, Adani Electricity Mumbai and other renewable energy subsidiaries. The damning report with allegations of fraud, and an FPO cancelled abruptly after being fully subscribed, have caused serious damage to investor confidence in Adani stocks.
RECENT STORIES
-
Narayanan Vaghul, ex-ICICI Chairman And Indian Banking Stalwart Passes Away At 88 -
Mumbai: Man Arrested For Allegedly Raping 24-Yr-Old Woman In Worli On Pretext Of Offering Her Job -
Rapper King Becomes First Ever Indian Pop Artist To Walk Cannes Red Carpet, Says 'Felt Like A... -
Mizoram School Admits 8 Pairs Of Twins, Picture Goes Viral -
Rabb Se Hai Dua's Yesha Rughani Believes In Keeping Herself Away From Social Media, Says, 'Just Use...