The shares of Adani group-owned Adani Ports and Special Economic Zone Ltd. are trading in deep red in the intraday trade on Monday, October 7.
Crisis in West Asia
This is being attributed by analysts to the ever-increasing nature of the ongoing conflict in West Asia.
The crisis in the Middle East, as a result of the ongoing escalation in skirmishes between Iran, its proxies (Hamas and Hezbollah), and the state of Israel, appears to be increasing the anxiety of stakeholders around the globe.
Apart from fuel prices, which are surging with a renewed fervour, global trade has also been another facet that has been in focus.
The company crucially operates some of the largest and most consequential ports, including Mundra Port. (Mundra Port) | Adani
With stakes across major ports in the country, the fate of the company's functionality would be hindered if global trade of commodities of varied types and kinds is affected as a result of the chaos injected by the two warring nations.
Adani's Port Arsenal
Adani Ports currently operates 13 ports in the country, spread across the Malabar and Coromandel coasts. The company crucially operates some of the largest and most consequential ports, including Mundra Port, Gujarat, Vizhinjam Port, Kerala and Krishnapatnam Port.
Shares In Red
On Monday, as the Indian markets opened to a gloomy day at the Dalal Street, the shares of Adani Ports collapsed by beyond 5 per cent in the intraday trade. The company shares have been witnessing a steady decline in their status since the beginning of the day's trade. However, exacerbating the situation, the shares dipped even further.
Shares in red on Monday |
At the time of writing, the shares appear to be on their path to some recovery. At 11:28 IST, Adani Ports shares dropped by 3.08 per cent or Rs 43.50.
Monthly decline in shares |
This took the overall value of the company shares to Rs 1,370.20 per piece. It also needs to be noted that the Adani Ports shares have not fared well in the past month of trading, as they have declined by 4.65 per cent or Rs 66.70.
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