Adani Group Stocks are soaring today. Key Performer of Adani Grop Stocks was: Adani Ports (12.57% Adani Enterprises (7.66%), Adani Power (4.96%), Adani Total Gas (3.62%), Adani Green (2.60%), and Adani Transmission (1.42%).
Looking at the shareholding pattern of Adani Group Stocks, there is strong holdings by Indian Promoters, Foreign Promoters, Foreign Institutional Investors (FIIs), but Domestic Institutional Investors (DIIs) are not participating in this group stocks. So, what’s the reason behind this and Why Today this share has surged by such a significant percentage. Let’s start.
Reasons behind the rise in Prices of Adani Group Stocks:
- In May, there is a Semi-Annual Review of the MSCI Standard Index.
- And, as per the report of analysts and research houses, it is expected that 3 Stocks of Adani Group namely Adani Enterprises, Adani Total Gas, and Adani Transmission will be included in MSCI Standard Index.
- If these stocks are included in the following index, then individually each stock may report an inflow of around $200-$210 million i.e., nearly Rs. 1500 Cr. in Indian Rupees.
- MSCI Index is followed by 2 groups of funds:
i) Passive Funds: Here as per the MSCI Standard Index allocation, weightage is given in funds.
ii) Active Funds: This group may be underweight, overweight in these stocks.
- As seen in the past, around 2-3 times of this passive flow comes in active funds flow.
- The market is reacting very positively to this news.
Key Concerns in Adani Group Stocks:
Pledging of Promoter’s Stake:
Despite the high creditworthiness and belief of Foreign Institutional Investors in the company, Promoters of the Company are pledging their shared to raise money which becomes a prime concern from an investor’s point of vie
Apart from this 3 Adani Group Stocks, SBI Card and Payments are expect to be included in MSCI Emerging Standard Index.
As mentioned above, if included this stock will also become eligible for receiving an inflow of $200-$210 million.
As per the report, the Investor should track and should have an eye on these 4 stocks. One should not be fully driven by the news only but the proper study must be done before taking any allocation in the stocks.