Shares of Adani Group companies surged dramatically in Tuesday's trading session after India and the United States announced a trade agreement that replaced punitive 50 percent tariffs with a revised 18 percent levy Business Standard.
Market Performance
Adani Enterprises, the conglomerate's flagship company, jumped as much as 12 percent, marking its steepest intraday gain since November 2024 Business Standard. Other group companies also posted strong gains, with Adani Green surging 12.7 percent, Adani Energy Solutions rising 10 percent, Adani Ports climbing 8 percent, and Adani Power advancing 7.8 percent Business Standard.
The rally extended to Adani's acquired entities, with Ambuja Cements and NDTV also registering gains during early trade.
Broader Market Rally
The positive sentiment wasn't limited to Adani stocks. The Nifty index rose as much as 4.99 percent to 26,341 points, while the Sensex advanced 5.15 percent to 85,871 points, notching the steepest intraday gains since February 1, 2021 Business Standard. Both billionaire-led conglomerates benefited, with Reliance Industries climbing as much as 7.1 percent during trading in Mumbai, the most in two years Bloomberg.
Key Beneficiary Status
Investment firm Jefferies identified the Adani Group as one of the primary beneficiaries of the trade agreement, citing the conglomerate's significant exposure to the US market. The firm also highlighted that auto ancillaries, solar manufacturers, chemical companies, and textile sectors are positioned to gain from the reduced tariffs.
Trade Deal Details
The agreement marks a significant shift in bilateral trade relations. US President Donald Trump announced the revised tariff structure in return for an agreement that India would stop buying Russian oil Business Standard. The deal reduces export tariffs from the previous punitive rates, providing relief to Indian manufacturers and exporters across multiple sectors.
Expert Recommendations
Market analysts offered mixed guidance on the rally. Kranthi Bathini of Wealthmills Securities suggested that while the trade deal is positive for Adani Group companies, fresh buying may not be advisable at current levels. Mahesh Ojha of Kantilal Chhaganlal Securities recommended that existing investors who purchased at lower levels during recent volatility consider booking partial profits.
Recent Corporate Developments
The rally comes on the heels of positive corporate news for the group. Japan Credit Rating Agency recently assigned ratings to three Adani portfolio companies, with Adani Ports receiving an A- (Stable) rating, while Adani Green Energy and Adani Energy Solutions each received BBB+ (Stable) ratings.
Additionally, two Adani Group blue-chip firms—Adani Enterprises and Adani Ports & Special Economic Zone—are scheduled to announce their quarterly results today.
0 Comments