Shares of Adani Group’s Adani Power hit the upper circuit for the fourth straight session on Tuesday even as several other group companies remain in the red.
What Happened: The company that had been amidst a nose-dive at the bourses made a comeback last Thursday after hitting lower circuits for five straight sessions. The recovery last Thursday came as the company announced that the ₹7,017-crore acquisition of DB Power will not go through as the deadline to complete the transaction expired.
Similarly, on Monday, media reports suggested that the company was considering not bidding for a stake in the government-backed Power Trading Corporation. The decision comes as the group looks to cut its capital expenditure after its market value tanked around $132 billion since the Hindenburg report came out.
Earlier on Monday, the Indian government invoked its emergency powers under Section 11 of the Electricity Act and asked imported coal-based power plants to run at full capacity for three months starting March 16. The government expects power to peak around 229 GW in April.
Late last week the National Stock Exchange also announced that Adani Power will be part of Nifty 500, Nifty 200, Nifty Midcap 100, Nifty Midcap 150, Nifty LargeMidcap 250, and Nifty Midsmallcap 400 indices.
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Price Action: Adani Power jumped 5% to hit upper circuit at ₹171.15 as the markets opened on Tuesday.
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